/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/180910.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, September 10, 2018, Vol. 21, No. 179 Headlines A U S T R A L I A A1 AUTOMOTIVE: First Creditors' Meeting Set for Sept. 17 ALL INDUSTRIAL: First Creditors' Meeting Set for Sept. 14 BIG UN: Investor Crumbles Under Collapse BOART LONGYEAR: Ashurst Advises on the Company's Redomicile BON APPETIT: Enters Into Voluntary Administration DAMM FINE: Second Creditors' Meeting Set for Sept. 13 DELMEGE O'SHEA: Second Creditors' Meeting Set for Sept. 17 I-CONSTRUCT PTY: First Creditors' Meeting Set for Sept. 13 LAKESHORE GROUP: Second Creditors' Meeting Set for Sept. 13 SHINSEN TAIJUTSU: Second Creditors' Meeting Set for Sept. 14 SAPPHIRE XIX 2018-2: Moody's Assigns B1 Rating on Class F Notes SNJ TRANSPORT: Second Creditors' Meeting Set for Sept. 17 C H I N A FUTURE LAND: Moody's Gives Ba3 Sr. Unsecured Rating to New Notes FUTURE LAND: S&P Assigns 'BB-' Rating on Senior Unsecured Notes GREENTOWN CHINA: Moody's Alters Outlook to Pos. & Affirms Ba3 CFR LOGAN PROPERTY: Fitch Assigns BB- Rating to USD300MM Sr. Notes LVGEM REAL: Fitch Affirms 'B' LT For. Curr. Issuer Default Rating QINGHAI PROVINCIAL INVESTMENT: S&P Lowers Long-Term ICR to B+ YESTAR INTERNATIONAL: Fitch Affirms BB- IDR & Sr. Unsec. Rating I N D I A B.R. SPONGE: Ind-Ra Migrates BB Issuer Rating to Non-Cooperating BASUDEB AUTO: CRISIL Reaffirms B+ Rating on INR10.25cr Loan BHARAT ALUMINIUM: CRISIL Assigns B Rating to INR4.89cr Term Loan BMR GOLD: CRISIL Assigns B+ Rating to INR6cr Cash Credit BRIGHT FAME: CRISIL Assigns B+ Rating to INR8cr Cash Loan CEE DEE: Ind-Ra Affirms 'BB+' LT Issuer Rating, Outlook Stable CHAMPION OM: CRISIL Assigns B+ Rating to INR13.75cr Cash Loan CONCORD HOSPITALITY: Ind-Ra Maintains D Rating in Non-Cooperating DIGIFLIC CONTROLS: Ind-Ra Maintains B+ Rating in Non-Cooperating FASTBUILD BLOCKS: Ind-Ra Raises Long Term Issuer Rating to 'BB-' GLOBARENA TECH: Ind-Ra Maintains B+ LT Rating in Non-Cooperating GREEN POWER: CRISIL Lowers Rating on INR105cr Term Loan to D HAQ STEELS: Ind-Ra Moves BB LT Issuer Rating to Non-Cooperating IRAKI TRADING: Ind-Ra Moves BB Issuer Rating to Non-Cooperating KALYANALAKSHMI SHOPPING: Ind-Ra Affirms B+ Rating, Outlook Stable KASTURCHAND FERTILIZERS: Ind-Ra Maintains B+ in Non-Cooperating KISAN SHAKTI: CRISIL Assigns B+ Rating to INR12.5cr Loan MTAR TECHNOLOGIES: CRISIL Withdraws C Rating on INR30cr Cash Loan MUKAND SYSTEM: Ind-Ra Maintains BB+ LT Rating in Non-Cooperating NEYSA JEWELLERY: CRISIL Reaffirms D Rating on INR42.79cr LT Loan NOVELTY SALES: Ind-Ra Maintains 'B' LT Rating in Non-Cooperating P.V. INFRA: CRISIL Assigns B Rating to INR4.5cr Secured Loan PGSD AGRO: CRISIL Assigns B+ Rating to INR5cr Cash Loan RELIANCE INFRASTRUCTURE: Ind-Ra Raises LT Issuer Rating to 'C' RELIANCE NAVAL: IDBI Bank Files Insolvency Case v. Firm S.S. OVERSEAS: CRISIL Migrates B Rating to Not Cooperating S. K. MASALA: CRISIL Migrates B+ Rating to Not Cooperating SAMANVAY PARK: Ind-Ra Maintains BB- LT Rating in Non-Cooperating SATNAM GLOBAL: CRISIL Migrates B- Rating to Not Cooperating SHARAYU AGRO: CRISIL Lowers Rating on INR200cr Term Loan to D SOUHARDHA INFRA-TECH: Ind-Ra Maintains B- in Non-Cooperating SRI LAKSHMI: CRISIL Lowers Rating on INR45cr Cash Loan to D SRI SAHITHI: CRISIL Assigns B+ Rating to INR8cr Cash Loan SUNRISE TIMPLY: Ind-Ra Migrates BB+ LT Rating to Non-Cooperating V.C. CONSTRUCTIONS: CRISIL Reaffirms B Rating on INR10cr Loan VIJAYALAKSHMI AGENCIES: CRISIL Moves B+ Rating to Not Cooperating YASH CONSTRUCTION: CRISIL Migrates B Rating to Not Cooperating I N D O N E S I A GARUDA INDONESIA: Reform Faces Crucial Test as Shareholders Meet N E W Z E A L A N D AUGUSTUS BISTRO: Owes Creditors More Than NZ$660,000 - - - - - ================= A U S T R A L I A ================= A1 AUTOMOTIVE: First Creditors' Meeting Set for Sept. 17 -------------------------------------------------------- A first meeting of the creditors in the proceedings of A1 Automotive Blasting Pty Ltd will be held at the offices of McLeod & Partners, Hermes Building, Level 1, 215 Elizabeth Street, in Brisbane, Queensland, on Sept. 17, 2018, at 10:00 a.m. Jonathan Paul McLeod of McLeod & Partners was appointed as administrator of A1 Automotive on Aug. 9, 2018. ALL INDUSTRIAL: First Creditors' Meeting Set for Sept. 14 --------------------------------------------------------- A first meeting of the creditors in the proceedings of All Industrial Services Pty Limited will be held at the offices of Worrells Solvency & Forensic Accountants, Suite 1, 151 Tongarra Road, in Albion Park, NSW, on Sept. 14, 2018, at 10:30 a.m. Nicholas Craig Malanos and Daniel Ivan Cvitanovic of Worrells Solvency & Forensic were appointed as administrators of All Industrial on Sept. 4, 2018. BIG UN: Investor Crumbles Under Collapse ---------------------------------------- Colin Kruger at The Sydney Morning Herald reports that the administrators appointed to Big Un Ltd would not say if the former stock market darling, once worth AUD840 million, is now worthless, but at least one investor has been forced to reach that conclusion. A.P. Meyer Pty Ltd, the investment company owned by Sydney businessman Anthony Meyer, collapsed into administration four weeks before Big Un Ltd met the same fate, according to SMH. "It is my view that the company's financial difficulties arose after a significant investment asset, being shares in Big Un Ltd, were largely rendered valueless," said A.P. Meyer's administrator Adam Shepard in a report to creditors, SMH relays. According to the report, the A.P. Meyer creditors voted in favor of a Deed of Company Arrangement (DOCA) on Sept. 3 instead of putting the company into liquidation. A similar fate could await Big Un. After the creditor's meeting on Sept. 5, Big Un's lead administrator Neil Cussen said: "a deed of company arrangement remains under discussion with directors," to salvage its business, SMH relays. This includes co-founder Brandon Evertz. It is not clear if this will create any value for investors like Mr. Meyer. He bought up millions of dollars worth of stock in November last year as the share price peaked at AUD4.79, capping off one of the most astounding runs the bourse has experienced, SMH says. "It is with great pleasure that I announce my increased support of BIG," Mr. Meyer, as cited by SMH, said in the ASX release. According to SMH, Big Un shares had increased nearly 20-fold for the year, or 2,000 per cent, briefly valuing Mr. Meyer's entire stake in the business at AUD81 million. It cemented his position as the largest shareholder in the group, which claimed to successfully charge small businesses thousands of dollars to make videos, which its subsidiary Big Review TV then posted to YouTube. One of Mr. Meyer's other businesses, Sofa Studio, was a client. For the 2017 financial year, the company reported a 500 per cent increase in revenue to AUD14 million and strong cash flows, SMH recalls. "The company is experiencing continued demand for its video subscription products and the sales results for the year reflect this," SMH quotes chairman Hugh Massie as saying in Big Un's annual report last year. SMH notes that the wheels were falling off by February, by which time the stock had more than halved in price, raising doubts about the credibility of the company's financial results. In July, the company shocked the market after finally releasing its December half-year results, SMH says. SMH relates that Big Un reported revenue of just AUD3.2 million, and a net loss totalling AUD52 million. It restated its cash flows to reflect the fact it was now negative, and the auditor raised doubts as to whether the company could continue as a going concern. SMH says the sudden change in the reporting of Big Un's financial health was due to new accounting standards that meant it could no longer recognise "advances from sponsors" as revenue. It could only report real revenue from actual customers who used its service. Last month, it became clear the stock might be worthless after administrators were appointed to Big Un, adds SMH. Neil Robert Cussen and Matthew James Donnelly of Deloitte Financial were appointed as administrators of Big Un on Aug. 24, 2018. BOART LONGYEAR: Ashurst Advises on the Company's Redomicile ------------------------------------------------------------ Ashurst has advised Boart Longyear Limited ('BLY'), the world's leading supplier of drilling services, equipment and tooling for mining and drilling companies, on its proposal to re-domicile to Canada by way of a scheme of arrangement ('Scheme'), subject to shareholder and regulatory approvals. BLY has entered into a Scheme Implementation Agreement with Boart Canada, a newly incorporated company domiciled in British Columbia, Canada. If the Scheme is implemented, Boart Canada will acquire all the ordinary shares in BLY and eligible BLY shareholders will receive the same proportionate interests in Boart Canada as they currently have in BLY. Boart Canada will apply to be listed on the ASX and BLY will be delisted from the ASX. Boart Canada will effectively replace BLY as the listed entity on the ASX. The re-domicile reflects BLY's commitment under the Restructuring Support Agreement entered into with its key creditors ('Supporting Creditors') in connection with the recapitalisation which completed in September 2017, under which BLY agreed to take all requisite steps to re-domicile to the US, Canada or the UK unless BLY determined, jointly with the Supporting Creditors, that a re- domicile would not be in the best interests of BLY. The team was led by partner Sarah Dulhunty (Corporate), and included senior associate Scott Lai, and lawyers Rory McLeod, Lee- Anne Yeo, Ben Lyttle, and Sarah Yang (Corporate); partners James Marshall and Camilla Clemente (RSSG); partner Peter McCullough and lawyer Sammuel Dobbie-Smitham (Tax). Boart Longyear -- http://www.boartlongyear.com/-- is a provider of drilling services, drilling equipment, performance tooling and instrumentation for mining and drilling companies. It also has a substantial presence in aftermarket parts and service, energy, mine de-watering, oil sands exploration, production drilling, and down-hole instrumentation. Boart Longyear is headquartered in Salt Lake City, Utah, USA, and listed on the Australian Securities Exchange in Sydney, Australia (ASX:BLY). As reported in the Troubled Company Reporter-Asic Pacific on July 23, 2018, S&P Global Ratings affirmed its corporate credit rating on Salt Lake City-based Boart Longyear Ltd. at 'CCC+'. The outlook is stable. BON APPETIT: Enters Into Voluntary Administration ------------------------------------------------- Dominic Powell at SmartCompany reports that Bon Appetit Australia has entered voluntary administration after ongoing issues with the business, with creditors reportedly owed over AUD1 million. Established back in 1980, Bon Appetit is a family business that started out as a small Melbourne gelateria on Chapel Street. In 2011, the company began producing and supplying ice cream and gelato to a number of Australian businesses through the Bottega del Gelato and Brown Cow Ice Cream brands, according to SmartCompany. SmartCompany notes that the company is the main producer of ice cream for the Dairy Bell ice-cream stores based in Victoria, and also runs a frozen and packaged fruit and jam brand called Berry King. The company acquired Dairy Bell back in 2015 after the iconic local ice-creameries shut their doors after 45 years earlier in 2015, with owner and founder Andre Razums telling SmartCompany at the time he felt closure was a better option than trying to sell. "It's all our own work, its 40 years of ourselves and we didn't want to let someone else have that. Money is not the only thing. There is such a thing as care for what you've done all your life," the report quotes Mr. Razums as saying at the time. However, Bon Appetit saved the company from collapse one month later for an undisclosed sum, with Bon Appetit owner Lou Da Lozzo telling SmartCompany he made the decision due to Dairy Bell's rich local heritage. "The number one reason we made the deal was that it is a great Victorian business, and we recognised that as producers ourselves," SmartCompany quotes Mr. Da Lozzo as saying at the time. "The core ice-cream recipes will be produced the same, but we will look to add some more flavour. [The owners] deserve a pat on the back for running a business for 45 years." However, with Bon Appetit's collapse, the future of Dairy Bell is uncertain. According to SmartCompany, administrators from Cor Cordis were appointed on Aug. 31 to manage the administration process, with administrator Glenn Spooner telling Fairfax while Dairy Bell's recipes are produced by Bon Appetit, a director of the company separately owns the recipe's intellectual property, with a sale of the IP reportedly underway. "A related entity of Bon Appetit has 19 staff and unfortunately we have had to let a couple go - we have 15 or 16 left," Spooner told Fairfax. Mr. Spooner told Fairfax the businesses had to shut down due to being loss-making for a long period of time, along with one director's ongoing health issues contributing to the business' administration, SmartCompany relays. Though the administrators are currently assessing amounts owed to creditors, Mr. Spooner said the current figure of AUD900,000 is likely to balloon out to an excess of AUD1 million. The company has assets including existing stock and manufacturing equipment, which the administrators are planning to sell, SmartCompany adds. DAMM FINE: Second Creditors' Meeting Set for Sept. 13 ----------------------------------------------------- A second meeting of creditors in the proceedings of Damm Fine Food Pty Ltd has been set for Sept. 13, 2018, at 11:00 a.m. at the offices of Worrells Solvency & Forensic Accountants, Level 15, 114 William Street, in Melbourne, Victoria. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Sept. 12, 2018, at 5:00 p.m. Ivan Glavas and Con Kokkinos of Worrells Solvency were appointed as administrators of Damm Fine on Aug. 9, 2018. DELMEGE O'SHEA: Second Creditors' Meeting Set for Sept. 17 ---------------------------------------------------------- A second meeting of creditors in the proceedings of Delmege O'Shea Pty Ltd has been set for Sept. 17, 2018, at 11:00 a.m. at the offices of Level 3, 65 York Street, in Sydney, NSW. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Sept. 14, 2018, at 4:00 p.m. David Anthony Hurst of Hurst Recovery was appointed as administrator of Delmege O'Shea on July 17, 2018. I-CONSTRUCT PTY: First Creditors' Meeting Set for Sept. 13 ---------------------------------------------------------- A first meeting of the creditors in the proceedings of I-Construct Pty Ltd will be held at Suite 7, 66 Appel Street, in Surfers Paradise, Queensland, on Sept. 13, 2018, at 11:30 a.m. Bill Cotter of Robson Cotter Insolvency Group was appointed as administrator of I-Construct Pty on Sept. 3, 2018. LAKESHORE GROUP: Second Creditors' Meeting Set for Sept. 13 ----------------------------------------------------------- A second meeting of creditors in the proceedings of Lakeshore Group Pty Ltd has been set for Sept. 13, 2018, at 10:00 a.m. at BGC Conference Suite, 28 The Esplanade, in Perth, WA. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Sept. 12, 2018, at 4:00 p.m. Jeremy Joseph Nipps and Clifford Stuart Rocke of Cor Cordis were appointed as administrators of Lakeshore Group on Aug. 9, 2018. SHINSEN TAIJUTSU: Second Creditors' Meeting Set for Sept. 14 ------------------------------------------------------------ A second meeting of creditors in the proceedings of Shinsen Taijutsu Pty Ltd has been set for Sept. 14, 2018, at 9:30 a.m. at the offices of Palisade Business Consulting, 22 Lindsay Street, in Perth, WA. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Sept. 13, 2018, at 4:00 p.m. Jack Robert James and Paula Smith of Palisade Business Consulting were appointed as administrators of Shinsen Taijutsu on Aug. 10, 2018. SAPPHIRE XIX 2018-2: Moody's Assigns B1 Rating on Class F Notes --------------------------------------------------------------- Moody's Investors Service has assigned the following definitive ratings to the notes issued by Permanent Custodians Limited as trustee of Sapphire XIX Series 2018-2 Trust. Issuer: Sapphire XIX Series 2018-2 Trust AUD135.0 million Class A1 Notes, Assigned Aaa (sf) AUD75.0 million Class A2a Notes, Assigned Aaa (sf) AUD38.1 million Class A2b Notes, Assigned Aaa (sf) AUD29.7 million Class B Notes, Assigned Aa2 (sf) AUD6.9 million Class C Notes, Assigned A2 (sf) AUD6.0 million Class D Notes, Assigned Baa2 (sf) AUD4.8 million Class E Notes, Assigned Ba2 (sf) AUD2.1 million Class F Notes, Assigned B1 (sf) The AUD2.4 million Class G Note is not rated by Moody's. The ratings address the expected loss posed to investors by the legal final maturity. The deal is an Australian non-conforming residential mortgage- backed securities transaction secured by a portfolio of near prime and non-conforming residential mortgage loans. All receivables were originated by Bluestone Group Pty Limited or Bluestone Mortgages Pty Limited and are serviced by Bluestone Servicing Pty Limited. RATINGS RATIONALE The definitive ratings take into account, among other factors, the evaluation of the underlying receivables and their expected performance, the evaluation of the capital structure and credit enhancement provided to the notes, the availability of excess spread over the life of the transaction, the liquidity facility in the amount of 2.0% of the notes' balance, the legal structure, and the credit strength and experience of Bluestone Servicing as servicer. - Moody's MILAN CE - representing the loss that Moody's expects the portfolio to suffer in the event of a severe recession scenario - is at 17.3%. Moody's expected loss for this transaction is at 2.0%. Key transactional features are as follows: - While the Class A1 and Class A2 Notes rank sequentially in relation to interest and charge-offs, they rank pari passu in relation to principal throughout the life of the transaction, although Class A2a and A2b rank sequentially in relation to principal. Principal repayments will be allocated pro-rata, based on the stated amount of the notes. This feature reduces the absolute amount of credit enhancement available to the Class A Notes. - Class B to Class F notes will start receiving their pro-rata share of principal if step-down conditions are met. - Permitted further advances can be funded within the trust, which could lead to a deterioration in the credit quality of the pool. Further advances are subject to certain conditions. Further advances will be funded through principal collections. - A retention mechanism will be used to divert excess available income towards the repayment of the most junior class of notes outstanding, starting from the Class F Notes. The retention amount will be up to 0.05% of the current outstanding pool balance per month, and up to a total captured amount of AUD750,000. At the same time, the trustee will issue Class RM Notes, equivalent to the retention amount allocated, leaving subordination levels unchanged. Key pool features are as follows: - While the portfolio has a reasonably high weighted-average scheduled loan-to-value (LTV) of 69.2%, there are no loans in the pool with a scheduled LTV above 85.0%. - Investment and interest-only loans represent 21.6% and 9.9% of the pool, respectively. - Based on Moody's classifications, the portfolio contains 30.7% exposure to borrowers with prior credit impairment (default, judgment or bankruptcy). Moody's assesses these borrowers as having a significantly higher default probability. - Based on Moody's classifications, the portfolio contains 59.3% of loans granted on the basis of alternative income documentation, with a further 2.6% granted on the basis of low income documentation. - Based on Moody's classifications, around 57.1% of the loans in the portfolio were extended to self-employed borrowers. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Moody's Approach to Rating RMBS Using the MILAN Framework" published in September 2017. Factors That Would Lead to an Upgrade or Downgrade of the Ratings Factors that could lead to an upgrade of the notes include a rapid build-up of credit enhancement, due to sequential amortization or better-than-expected collateral performance. The Australian jobs market and the housing market are primary drivers of performance. A factor that could lead to a downgrade of the notes is worse- than-expected collateral performance. Other reasons that could lead to a downgrade include poor servicing, error on the part of transaction parties, a deterioration in the credit quality of transaction counterparties or lack of transactional governance and fraud. SNJ TRANSPORT: Second Creditors' Meeting Set for Sept. 17 --------------------------------------------------------- A second meeting of creditors in the proceedings of SNJ Transport Pty Ltd has been set for Sept. 17, 2018, at 10:30 a.m. at the offices of Worrells Solvency & Forensic Accountants, Suite 1103, Level 11, 147 Pirie Street, in Adelaide, SA. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Sept. 16, 2018, at 5:00 p.m. Nicholas David Cooper and Dominic Charles Cantone of Worrells Solvency were appointed as administrators of SNJ Transport on Aug. 13, 2018. ========= C H I N A ========= FUTURE LAND: Moody's Gives Ba3 Sr. Unsecured Rating to New Notes ---------------------------------------------------------------- Moody's Investors Service has assigned a Ba3 senior unsecured rating to the proposed notes to be issued by Future Land Development Holdings Limited (Ba2 stable). The proceeds of the notes will be used to repay existing indebtedness and for general corporate purpose. RATINGS RATIONALE "The proposed notes will provide term funding for Future Land Development to support its operations and improve its liquidity and debt maturity profile," says Kaven Tsang, a Moody's Vice President and Senior Credit Officer. "The notes will not have a material impact on the company's credit metrics, because the proceeds will be mainly used for refinancing," adds Tsang, who is also Moody's Lead Analyst for Future Land Development. Moody's projects that Future Land Development's adjusted revenue/debt and adjusted EBIT/interest coverage - including its share in joint ventures - will measure around 80% and around 3.5x over the next 12-18 months. These ratios support the company's Ba2 corporate family rating (CFR). Future Land Development's Ba2 CFR reflects its close linkage with Future Land Holdings Co., Ltd (Ba2 stable), a 67.1%-owned subsidiary of Future Land Development that at the end of 2017 accounted for 99% of consolidated revenue, 97% of consolidated assets and 80% of consolidated reported debt. The Ba2 CFR further reflects its strong sales execution, growing scale and improving geographic diversification into other cities in the Yangtze River Delta. In addition, its growing stream of non-development revenue will add stability to its earnings and debt-service ability. The Ba2 rating is also supported by its adequate liquidity position, with its cash balance of RMB26.5 billion as of June 2018 covering 120% of its short-term debt. However, the rating also factors in its exposure to the regional economy of the Yangtze River Delta, execution risks associated with its fast growth and its sizeable exposure to joint venture businesses. The Ba3 senior unsecured rating is one notch lower than its CFR due to structural subordination risk. This risk reflects the fact that the majority of claims are at the operating subsidiaries. These claims have priority over Future Land Development's senior unsecured claims in a bankruptcy scenario. In addition, the holding company lacks significant mitigating factors for structural subordination. As a result, the likely recovery rate for claims at the holding company will be lower. The stable outlook reflects Moody's expectation that Future Land Development will maintain a disciplined approach to land acquisitions, stable financial metrics and an adequate liquidity position over the next 12-18 months. Future Land Development's rating could be upgraded if the company sustains resilient sales through the cycles, strong liquidity and prudent financial management. Specifically, upward rating pressure could emerge if the company's: (1) adjusted revenue/debt - including its share in joint ventures - exceeds 100%-105%; or (2) EBIT interest coverage stays above 4.5x-5.0x on a sustained basis. On the other hand, downward rating pressure could emerge if the company's contracted sales growth slows and its credit metrics weaken, with EBIT/interest coverage falling below 3.0x, or adjusted revenue/debt falling below 80%-85% on a sustained basis. Founded in 1996, Future Land Development Holdings Limited engages primarily in residential development. As of June 30, 2018, Future Land maintained a presence in 73 cities in China, with a land bank of approximately 86.44 million square meters of gross floor area. FUTURE LAND: S&P Assigns 'BB-' Rating on Senior Unsecured Notes --------------------------------------------------------------- S&P Global Ratings said it has assigned its 'BB-' long-term issue rating to a proposed issue of U.S. dollar-denominated senior unsecured notes by Future Land Development Holdings Ltd. (BB/Stable/--). The issue rating is subject to S&P reviews of the final issuance documentation. S&P rates the senior unsecured notes one notch lower than the issuer credit rating because of subordination risk. The proposed notes will rank behind a significant amount of secured debt and subsidiary-level debt. As of June 30, 2018, the company had around RMB35 billion in secured debt and RMB30 billion in subsidiary- level unsecured debt, which together account for 95% of total reported debt. The proceeds will be for refinancing of existing borrowings, including domestic corporate bonds maturing in the fourth quarter of 2018. Future Land's total debt has increased 42% in the first half of 2018 from 2017 year-end, but its debt maturity profile has been well managed with short-term debt staying below a third of the total. S&P expects this new senior notes issuance and further offshore refinancing in the next six months to help improve the company's debt maturity profile. S&P said, "The stable outlook reflects our expectation that Future Land will continue to expand its scale and geographical diversity, while maintaining an improved level of profitability and leverage. In the first seven months of 2018, Future Land's total contracted sales jumped 130% to RMB113.6 billion. We expect Future Land's year-on-year revenue growth will be higher for the second half, after an increase of 40% in the first half. We believe the "see- through" debt-to-EBITDA ratio after proportionally consolidating joint ventures will still be at 5x-5.5x for 2018 despite growth in absolute debt." GREENTOWN CHINA: Moody's Alters Outlook to Pos. & Affirms Ba3 CFR ----------------------------------------------------------------- Moody's Investors Service has revised to positive from stable the outlooks on Greentown China Holdings Limited, Apex Top Group Limited and Wisdom Glory Group Limited. At the same time, Moody's has also affirmed Greentown's Ba3 corporate family rating and the following ratings: 1. The Ba3 backed senior unsecured rating on the USD senior notes issued by Greentown; and 2. The Ba3 backed senior unsecured rating on the senior perpetual capital securities issued by Apex Top Group Limited and guaranteed by Greentown China Holdings Limited; and 3. The Ba3 backed senior unsecured rating on the senior perpetual capital securities issued by Wisdom Glory Group Limited and guaranteed by Greentown China Holdings Limited. RATINGS RATIONALE "The positive rating outlook reflects its expectation that Greentown will sustain the improvement in its debt leverage over the next 12 -18 months," says Celine Yang, a Moody's Assistant Vice President and Analyst. Greentown's revenue/adjusted debt (including its share in joint ventures and associates) improved to 71.8% for the 12 months ended June 2018 from 57.4% at the end of December 2017. The improvement in its debt leverage was the result of strong 55% revenue growth to RMB65 billion for the 12 months ended June 2018 from RMB42 billion in 2017. The growth in revenue was in turn supported by strong contracted sales over the past few years, as well as by the sale of its completed Tianjin National Game Village, which accounted for over RMB12.1 billion of revenue in the first half of 2018. In addition, Moody's expects Greentown will maintain financial discipline, generate steady growth in contracted sales, and control its debt growth while pursuing an expansion strategy in the coming 12-18 months. Greentown achieved contracted sales of RMB52.3 billion in the first seven months of 2018, largely flat from RMB52.7 billion for the same period in 2017. Moody's expects Greentown will achieve contracted sales of RMB125- RMB135 billion over the next 12-18 months. This level of contracted sales will provide good support for ongoing revenue growth and support its ability to sustain the improvement in its debt leverage -- as measured by revenue/adjusted debt. Accordingly, Moody's expects the company's revenue/adjusted debt (including its share in joint ventures and associates) will remain around 60% and EBIT/interest around 2.3x (including its share in joint ventures and associates) over the next 12 -18 months. These levels result in a credit strength that is better than that of its B2-rated Chinese property peers. Greentown's corporate family rating of Ba3 rating continues to reflect its standalone credit strength and a two-notch rating uplift, based on Moody's expectation that the company will receive extraordinary financial support from China Communications Construction Group (Limited) (CCCG), its largest shareholder, in times of financial distress. Greentown's standalone credit strength reflects its (1) well- established market position in property development in Hangzhou city and Zhejiang Province, (2) long operating track record, good brand name, quality products and large nationwide land bank, and (3) improved financial management and funding costs as part of CCCG. At the same time, Greentown's standalone credit profile also takes into account its growth through joint ventures and associates. The two-notch uplift incorporates Moody's assessment that CCCG will extend strong support to Greentown in case of need, given that (1) it has significant influence on the company as its largest shareholder; (2) CCCG occupies four out of the six executive director seats on the company's board of directors; and (3) CCCG has demonstrated its willingness to provide financial support through a keepwell deed and a deed of equity purchase, investment and liquidity support undertaking in respect of Greentown's senior and perpetual bonds. This view also factors in CCCG's strong ability to provide support, underpinned by its large scale, strong business and financial profiles, and good access to funding. Upward rating pressure could emerge if the company (1) continues to show prudence in its financial management and land acquisition strategy; and (2) improves its debt leverage, such that revenue/adjusted debt (including its share in joint ventures and associates) is maintained above 60%-70% and EBIT/interest (including shares in joint ventures and associates) above 2.5x. The outlook on the rating could return to stable if the company's credit metrics are unlikely to improve to levels that will support an upgrade over the next 12--18 months. The principal methodology used in these ratings was Homebuilding And Property Development Industry published in January 2018. Greentown China Holdings Limited is a major property developer in China, with a primary focus in Hangzhou City and Zhejiang Province. At the end of June 2018, the company had 106 projects with a total gross floor area (GFA) of 32.97 million square meters (sqm), with 20.73 million sqm attributable to the company. LOGAN PROPERTY: Fitch Assigns BB- Rating to USD300MM Sr. Notes -------------------------------------------------------------- Fitch Ratings has assigned China-based Logan Property Holdings Company Limited's (BB-/Stable) USD300 million 7.5% senior notes due 2021 a final 'BB-' rating. The notes are rated at the same level as Logan's senior unsecured debt rating as they constitute its direct and senior unsecured obligations. Logan's ratings are supported by the company's well-located land bank in the city of Shenzhen and the Guangdong region, which provides the company with stronger contracted sales and margin visibility over the next 18 months compared with similarly sized rated peers. KEY RATING DRIVERS Larger Scale, Higher Selling Prices: Logan's contracted sales rose by 84% to CNY35.5 billion in 1H18, following a 53% increase in contracted floor space sold to 1.8 million square metres (sqm) and a 28% rise in the contracted average selling price (ASP) to CNY19,706/sqm. The company has CNY75.0 billion of new projects scheduled to launch in 2H18, which should keep contracted sales high for the next six months. Fitch expects Logan's annual contracted sales to increase to CNY67.0 billion in 2018, from CNY29.0 billion in 2016 and CNY43.0 billion in 2017. Wider Margin: Logan's EBITDA margin expanded to 33% in 2017, from 30% in 2016. Fitch expects profitability to remain high in the next two to three years, supported by the start of earning recognition from Logan's high-margin Shenzhen and Huizhou-city projects, which were presold in 2016-2017, and higher contracted sales ASP in 2017. The EBITDA margin is likely to be maintained at above 30% in 2018-2019. Concentration Risks Reduced: Fitch believes Logan's well-located land bank and expansion into new cities, including Hong Kong and Singapore, in the last 12-18 months mitigate concentration risk over the next year or two. Logan's contracted sales are highly concentrated in Guangdong province, with Shenzhen and Huizhou accounting for around 70% of 1H18 contracted sales. This leaves Logan's sales dependent on the local economy and policy changes, compared with developers that have more geographically diverse operations. Fitch expects Shenzhen to continue to account for 40%- 50% of total attributable contracted sales in 2018. High Leverage Pressures Rating: Logan's leverage, as measured by net debt/adjusted inventory that proportionately consolidates joint ventures (JVs) and associates, was around 50% at end-June 2018 (end-2017: 48%). This was up from 29% at end-2015 due to the acquisition of well-located sites in Shenzhen during 2015-2016 to reposition the land bank. The company spent CNY15.7 billion on replenishing its land bank in 1H18. Logan's land acquisition/contracted sales ratios were 58% in 2017, 42% in 2016 and 55% in 2015. Fitch expects the company to spend 35%-45% of consolidated contracted sales on land replenishment in 2018-2019 and to maintain a land bank sufficient for five to six years of development. This will keep leverage high at 45%-50% in next 12-18 months. DERIVATION SUMMARY Logan's contracted sales are higher than those of other 'BB-' rated Chinese developers, which have contracted sales of CNY28 billion-40 billion, including KWG Property Holding Limited (BB- /Stable), China Aoyuan Property Group Limited (BB-/Positive) and Yuzhou Properties Company Limited (BB-/Stable), and are comparable with higher-rated CIFI Holdings (Group) Co. Ltd.'s (BB/Stable) CNY46 billion. Future Land Development Holdings Limited (BB/Stable) has contracted sales of CNY95 billion. Logan's EBITDA margin is also similar to that of margin-focused homebuilders, such as KWG and Yuzhou. Logan's leverage increased to 48% at end-2017, which is comparable with the 38%-42% of 'BB-' rated Chinese developers, such as KWG, Yuzhou and Times China Holdings Limited (BB-/Stable). No Country Ceiling or parent and subsidiary aspects affect the rating. Operating environment risks make it unlikely for companies in this sector to be rated above 'BBB+'. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer - contracted sales of CNY67 billion in 2018 and CNY94 billion in 2019 - EBITDA margin, capitalised interest excluded from cost of sales, of 31% in 2018-2019 - 35%-45% of contracted sales proceeds to be spent on land acquisitions in 2018-2019 to maintain a land bank sufficient for five to six years of development RATING SENSITIVITIES Developments that May, Individually or Collectively, Lead to Positive Rating Action - no substantial decline in contracted sales - EBITDA margin sustained above 30% - leverage, as measured by net debt/adjusted inventory that proportionately consolidates JVs and associates, sustained below 40% Developments that May, Individually or Collectively, Lead to Negative Rating Action - leverage sustained above 50% - EBITDA margin below 25% for a sustained period LIQUIDITY Sufficient Liquidity: Logan had total cash on hand of CNY27.6 billion, including CNY2.2 billion of restricted cash and pledged deposits, as of end-June 2018, sufficient to cover short-term debt of CNY17.8 billion maturing in one year (consisting of bank and other loans of CNY8.3 billion, onshore corporate bond due 2019 of CNY6.5 billion, and senior notes due 2018 of CNY3.0 billion). LVGEM REAL: Fitch Affirms 'B' LT For. Curr. Issuer Default Rating ----------------------------------------------------------------- Fitch Ratings has affirmed China-based LVGEM (China) Real Estate Investment Company Limited's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'B'. The Outlook is Stable. Fitch has also affirmed LVGEM's senior unsecured rating and the rating on its outstanding US dollar senior notes at 'B'. The Recovery Rating on its senior unsecured rating is 'RR4'. LVGEM's ratings are supported by its high-margin urban redevelopment projects in Shenzhen and its portfolio of quality investment properties, including its centrally located Shenzhen NEO Tower office buildings. LVGEM's recurring EBITDA/gross interest paid was 0.59x at end-2017, higher than most of its 'B' rated peers. LVGEM is also expecting its controlling shareholder, Mr. Wong Hong King, to inject around 12 million sq m in urban redevelopment projects into the company. However, LVGEM's ratings are constrained by its small and fluctuating sales, limited geographical concentration and high leverage. Its 2017 contracted sales were materially affected by Shenzhen's stringent pricing policy and Fitch expects LVGEM's project concentration in Shenzhen to continue to expose the company to regulatory uncertainties. LVGEM's leverage, measured by net debt/adjusted inventory, increased to 52% at end-2017 due to its HKD9 billion acquisition of a Hong Kong office building in Kwun Tong. KEY RATING DRIVERS Higher Leverage: Fitch expects LVGEM's leverage to remain above 50% in 2018-2019 after the Hong Kong office building acquisition (renamed HK NEO Tower). Fitch thinks LVGEM's CNY2.8 billion investment in the Zhuhai Kaiwei project, the HKD9 billion acquisition of HK NEO Tower and other potential investments in 2017-2019 will continue to pressure LVGEM's leverage if it doesn't generate sufficient sales in the same period. Sales Below Expectations, High Margins: LVGEM's CNY3.6 billion contracted sales in 2017 were lower than its initial expectation of CNY5 billion, mainly due to a delay in pre-sales in Mangrove Bay No. 1 Phase I caused by Shenzhen's restrictive pricing policies. LVGEM aims to launch the project before the end of 2018 as the price ceiling is eased, contributing around 50% of its sales for the full year. As the project has been completed and highly anticipated by the market, Fitch expects LVGEM to achieve the company's sales target of CNY6 billion and recognise a large portion of the sales as revenue in 2018. Fitch thinks LVGEM's unique strength in Shenzhen has turned into a double-edged sword as the company has been caught by the stringent home purchase restriction policy in the city. Fitch believes LVGEM will continue to respond with slowing sales to achieve the best margins and would be willing to tolerate a higher leverage in the near term. LVGEM's property-development gross profit margin (GPM) has been above 45% over the past four years compared with the industry average of 20% due to its high-margin urban redevelopment projects in Shenzhen. LVGEM's GPM was 65% at end-2017 and Fitch expects the GPM to be sustained above 50% in 2018-2019. Quality Investment Properties: LVGEM's investment-property portfolio includes the Shenzhen NEO complex, which has office and retail components, and four Zoll community retail centres in Shenzhen, out of which Hongwan Zoll opened in 2017 and Mangrove Bay Zoll will open by end-2018. The Shenzhen NEO complex, in the city's central business district, is almost fully occupied and generated CNY320 million in rental in 2017. The three Zoll centres had above-95% occupancy rates and positive rental reversion in 2017. The contribution from the acquired Hong Kong office tower will depend on the proportion of the building that is retained for rental. Lower Recurring EBITDA Interest Coverage: LVGEM continued to generate strong recurring income in 2017. Fitch expects it to generate recurring EBITDA of above CNY500 million in 2018 from rentals at its investment-property, hotel and property-management businesses. However, Fitch expects recurring EBITDA/interest coverage to drop to around 0.4x in 2018 due to higher total debt from 0.6x in 2014-2017 and move towards 0.3x by end-2020. DERIVATION SUMMARY LVGEM's rating is supported by its portfolio of quality investment properties, including its centrally located Shenzhen NEO Tower office buildings. Fitch assesses LVGEM's investment properties alone as having a business profile of around 'BB', with more than USD50 million in rental EBITDA per year and more than USD1.5 billion in rental-deriving assets, setting it apart from most Chinese homebuilders that rely on more risky development-property sales to service their debt. This is comparable with Lai Fung Holdings Limited's (BB-/Stable) USD60 million in recurring EBITDA and USD2.0 billion investment-property value. LVGEM's main business focus remains on its urban redevelopment projects in Shenzhen. Its contracted sales are smaller and more volatile than most peers due to the uncertain timing of project injections from its ultimate shareholder. Fitch also expects LVGEM's leverage to increase and be sustained above 50% in 2018- 2019 following the Hong Kong office building acquisition and lower investment in residential projects with shorter payback periods. This level is similar to other 'B' rated peers, such as Yida China Holdings Limited's (B/Stable) 53% and China South City Holdings Limited's (B/Stable) 46%. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer - An injection of a large Shenzhen urban redevelopment project before the end of 2020, with LVGEM financing the purchase from the controlling shareholder mainly via shareholder loans. - LVGEM's contracted sales to reach CNY6 billion in 2018 and CNY7 billion in 2019. - Recurring EBITDA to increase to above CNY500 million in 2018- 2019. RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Positive Rating Action - Attributable contracted sales sustained above CNY10 billion while net debt/adjusted inventory is sustained below 45%; and - Recurring EBITDA/cash interest sustained above 0.3x Developments That May, Individually or Collectively, Lead to Negative Rating Action - Net debt/adjusted inventory sustained above 55% - Failure to maintain a project pipeline (including controlling shareholder's land bank) sufficient for two years of development LIQUIDITY Satisfactory Liquidity: LVGEM's CNY5.4 billion in cash (including restricted cash) at end-June 2018 is sufficient to cover CNY4.6 billion in short-term debt. LVGEM had CNY3.2 billion in undrawn credit facilities as of end-June 2018, as well as continued support from its controlling shareholder via shareholder loans. Fitch believes LVGEM has flexibility to adjust the pace of project development to alleviate its debt interest burden. Fitch also expects LVGEM to be able to issue more equity, based on its quality project pipeline, to support its expansion. LVGEM has already secured HKD5.4 billion in syndicated loans to fund its HKD9 billion acquisition of the uncompleted Hong Kong office in Kwun Tong. LVGEM has drawn HKD3.9 billion of the syndicated loans and paid HKD7.3 billion for the project as of end-June 2018. The company also received HKD1 billion in proceeds from the issue of common equity and convertible preferred shares in February 2018, providing additional liquidity. FULL LIST OF RATING ACTIONS LVGEM (China) Real Estate Investment Company Limited - Long-Term Foreign-Currency IDR affirmed at 'B'; Outlook Stable - Senior unsecured rating affirmed at 'B', with Recovery Rating of 'RR4' Gemstones International Limited - USD400 million 8.5% senior notes due 2020 affirmed at 'B', with Recovery Rating of 'RR4' QINGHAI PROVINCIAL INVESTMENT: S&P Lowers Long-Term ICR to B+ ------------------------------------------------------------- S&P Global Ratings lowered its long-term issuer credit rating on Qinghai Provincial Investment Group Co. Ltd. (QPIG) to 'B+' from 'BB-'. S&P also lowered the long-term issue rating on QPIG's outstanding senior unsecured notes to 'B+' from 'BB-'. All the ratings remain on CreditWatch with negative implications, where they were placed on June 21, 2018. QPIG is a China-based aluminum producer. S&P said, "We downgraded QPIG because we view its capital structure to be unsustainable over the long run. We kept all its ratings on CreditWatch with negative implications to reflect the lack of a concrete repayment plan for its short-term debt maturities, especially for the U.S. dollar-denominated senior unsecured notes due December 2018. "In our view, QPIG's capital structure is unsustainable and its liquidity will remain tight on a continuous basis due to high leverage, significant short-term debt, and limited cash available on hand. We forecast the company's debt-to-EBITDA ratio will remain above 25.0x over the next 12-24 months, driven by high aluminum production costs and thin operating profit. As of June 30, 2018, the company has total short-term debt of RMB19.2 billion, which accounts for around 45% of the company's total debt. In our view, short-term debt will continue to take up a significant portion of QPIG's debt mix over the next one to two years, at least." On the other hand, the company has limited liquidity sources. As of end-June, QPIG has only around RMB1.5 billion in unrestricted cash. S&P said, "We also expect the company to generate minimal funds from operations (FFO) from its core aluminum business due to high production costs. According to the company, it has had no problem in rolling over the bank and trust loans in the year to date, which collectively accounted for around 70% of its short- term debt. For the other debt, we believe that the company would have to rely on favorable market conditions and government support to meet the repayment obligation." Based on QPIG's current financing plan, S&P thinks that the company is likely to secure enough financial resources for the repayment of the US$300 million bond that is due in September 2018. Funding could come from the issuance of Chinese renminbi- denominated debt, such as corporate bonds, medium-term notes, and commercial paper. The company could also seek government help with the repayment, in S&P's opinion. S&P said, "We see lower visibility for the repayment of the US$300 million bond due in December 2018. The company is focusing on the repayment of the September 2018 notes, and therefore has no concrete plan for the December notes yet. We believe the outcome of the repayment of the September notes is critical for the repayment arrangement of the December notes. "We still see a high likelihood that the Qinghai provincial government will extend extraordinary support to QPIG in case of financial distress. In our view, potential government support may come in the form of direct funding support and assistance in the issuance of domestic debt. The magnitude of help may be subject to QPIG's own refinancing progress." The CreditWatch placement reflects the refinancing uncertainty for QPIG's upcoming short-term debt. The CreditWatch resolution will depend on the company's ability to formulate a detailed and credible repayment arrangement for its near-term maturities, specifically the outstanding US$300 million note due in December this year. S&P said, "We could lower the rating if QPIG's nonpayment risk increases, as shown by increasing difficulty in issuing new debt or rolling over its bank borrowings. This may happen due to worsening business and financial conditions and deteriorating banking relationships. We may also downgrade the company by more than one notch if we see a lower likelihood of extraordinary government support to the company than we currently expect. "We will likely affirm the rating if QPIG can formulate a credible plan for its short-term debt repayment and at the same time improve its liquidity and restore its access to the capital market." YESTAR INTERNATIONAL: Fitch Affirms BB- IDR & Sr. Unsec. Rating --------------------------------------------------------------- Fitch Ratings has affirmed Yestar International Holdings Company Limited's Long-Term Foreign-Currency Issuer Default Rating and senior unsecured rating at 'BB-'. The Outlook is Stable. The affirmation reflects Yestar's high exposure to China's rapidly growing in-vitro diagnostics (IVD) market, an established partnership with IVD industry leader, Roche Diagnostics, and a strong foothold in IVD distribution across important markets in northern, eastern and southern China. Yestar's leverage has risen over the previous year, but Fitch expects it to stay below its downgrade triggers, as Fitch does not expect the company to acquire the remaining 30% stake in its 70%- owned subsidiary, Anbaida, in 2018. However, rating headroom at the current leverage level is limited. KEY RATING DRIVERS Expanding IVD Business: Fitch expects the IVD business to expand at a mid-teen percentage and contribute around 70% of Yestar's revenue in 2018, up from 49% in 2016, and for this proportion to continue to rise. Yestar entered the IVD market in 2014 and has since acquired six IVD distributors that had established partnerships with Roche Diagnostics. Yestar benefits from robust growth of China's IVD market as one of the largest IVD distributors for Roche in China. Heightened Regulatory Risk: The two-invoice system, introduced in 2017 and aimed at reducing the layers of distributors between manufacturers and hospitals, has so far focused on drug distribution. The implementation of the two-invoice system in medical devices distribution is still in the early stages. Progress, which varies among provinces, has been slow. Fitch sees regulatory change as a medium-term risk to Yestar, as the company may lose some revenue from lower-tier distributors. This could be partially offset by increasing direct sales to hospitals as lower- tier distributors exit the market. Revenue from hospitals and lower-tier distributors accounted for 70% and 30%, respectively, of Yestar's total revenue. Slowing Acquisition Pace: Yestar acquired four IVD distributors in 2017 and is due to pay for the remaining 30% stake in IVD distributor, Anbaida, upon the completion of the three-year guarantee period. Yestar's readily available cash on hand of CNY368 million at end-June 2018 is insufficient to pay for the remaining stake of CNY675 million. Management indicates that the company is in discussion with the seller and is likely to delay the acquisition until 2019. Fitch also expects Yestar to slow M&A activity to focus on consolidating its current business, as it has already covered important markets in northern, eastern and southern China. Increasing Working Capital Needs: Fitch expects increasing working capital needs stemming from Yestar's IVD business expansion, as payment terms with hospitals are longer than those with imaging customers. Yestar's cash conversion cycle has lengthened since 2017 due to an increase in inventory and account receivables turnover days, which rose to 109 days and 102 days, respectively, at end-June 2018, from 74 days and 79 days at end-2016. This has weighed on operating cash flow. DERIVATION SUMMARY Yestar's ratings are supported by its exposure to China's rapidly expanding IVD market, an established partnership with IVD-industry leader, Roche Diagnostics, and strong free cash flow generation. However, the ratings are constrained by a small operating scale, limited record in the IVD business and M&A risk. Yestar's financial profile is better than that of peers of similar scale in the diversified services and diversified manufacturing sectors, such as eHi Car Services Limited (B+/Stable) and Hilong Holding Limited (B+/Stable). Yestar has a smaller operating scale and weaker financial profile compared with 361 Degrees International Limited (BB/Stable), KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: - Mid-to high-teen percentage revenue growth for the IVD business, with a 19% EBITDA margin in 2018-2019 (2017: 20%) - Revenue for the traditional imaging business to decline by 3% in 2018-2019 - Acquisition of the remaining 30% interest in IVD distributor, Anbaida, in 2019 - No further M&A RATING SENSITIVITIES Developments that May, Individually or Collectively, Lead to Positive Rating Action - Significant increase in operating scale, brand partners and geographic diversification, while keeping FFO adjusted net leverage below 2.5x on a sustained basis (2017: 2.2x) Developments that May, Individually or Collectively, Lead to Negative Rating Action - FFO adjusted net leverage above 2.5x for a sustained period - EBITDA margin below 15% for a sustained period - Adverse regulatory environment changes that subdue growth - Weakening in liquidity due to faster-than-Fitch-expected payment for acquisitions LIQUIDITY Sufficient Liquidity: Yestar had CNY368 million of cash and cash equivalents and around CNY28 million in undrawn banking facilities as of end-June 2018, which was more than enough to cover short- term debt of CNY286 million. ========= I N D I A ========= B.R. SPONGE: Ind-Ra Migrates BB Issuer Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated B. R. Sponge and Power Limited's Long-Term Issuer Rating in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR125 mil. Fund-based limit maintained in non-cooperating category with IND BB (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on August 23, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE B. R. Sponge and Power was incorporated in 2003 and manufactures sponge iron. BASUDEB AUTO: CRISIL Reaffirms B+ Rating on INR10.25cr Loan ----------------------------------------------------------- CRISIL has reaffirmed its 'CRISIL B+/Stable' rating on the long- term bank facilities of Basudeb Auto Limited (BAL) Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4.25 CRISIL B+/Stable (Reaffirmed) Channel Financing 10.25 CRISIL B+/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility .50 CRISIL B+/Stable (Reaffirmed) The rating continues to reflect BAL's exposure to intense competition and large working capital requirement. These weaknesses are partially offset by the experience of the promoters and an improving financial risk profile. Key Rating Drivers & Detailed Description Weaknesses * Exposure to intense competition: BAL's business depends entirely on principal supplier, Tata Motors Ltd (TML). Further, intense competition and low value addition may continue to constrain scalability, pricing power, and profitability. Furthermore, auto makers consistently introduce newer models and variants; success or failure of these new launches affects profitability of all players in the value chain, including dealers. * Large working capital requirement: Gross current assets have been 130-180 days for the four fiscals ended March 31, 2018, driven by large inventory of 79 days. Also, the dealer has to make full payment in advance to TML before the vehicles are dispatched from their premises. Strengths * Experience of promoters: The promoters have been in the auto dealership business for over four decades and have dealership of auto makers such as TML, LML Vespa, and Hindustan Motors (since 1970s, which has now been closed down). BAL has been a dealer of TML's passenger vehicles for 15 years, and has an established market presence in Jharkhand, with a distribution network spread across the state, including four showrooms and two workshops in Ranchi, Hazaribagh, Ramgarh, and Daltonganj. Benefits from the promoters' experience, their strong understanding of the local market dynamics, and healthy relations with customers and suppliers should continue to support the business. Outlook: Stable CRISIL believes BAL will continue to benefit from the experience of the promoters and an established relationship with TML. The outlook may be revised to 'Positive' if there is substantial increase in cash accrual and prudent working capital management. Conversely, the outlook may be revised to 'Negative' if lower- than-expected cash accrual, stretched working capital cycle or any large, debt-funded capital expenditure weakens financial risk profile and liquidity. BAL, incorporated in 2000 at Ranchi (Jharkhand), is an authorised dealer of passenger vehicles of TML in four districts of Jharkhand: Ranchi, Hazaribagh, Ramgarh, and Daltonganj. Ms. Sarita Kataruka , Medhavi Lohia, Mr . Arvind Lohia, Ms. Sumedha Goyal and Mr. Ramesh are the promoters. BHARAT ALUMINIUM: CRISIL Assigns B Rating to INR4.89cr Term Loan ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term facilities of Bharat Aluminium Extrusion Private Limited (BAEPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Rupee Term Loan 4.89 CRISIL B/Stable (Assigned) Cash Credit 2.50 CRISIL B/Stable (Assigned) Proposed Fund- Based Bank Limits 3.01 CRISIL B/Stable (Assigned) The rating reflects BAEPL's below-average financial risk profile and initial phase of operations. These weaknesses are partially offset by the extensive experience of the promoters and their funding support. Key Rating Drivers & Detailed Description Weaknesses * Initial phase of operations: Commercial operations commenced in July 2018. Stabilisation of operations, and commensurate ramp-up of sales will remain critical to growth in revenue and profitability. * Expected weak financial risk profile: Small networth and leveraged capital structure will constrain financial risk profile. Gearing is likely to remain high over the medium term, but should improve with build-up in networth and gradual repayment of term loans. Debt protection metrics are expected to remain average. Strength * Extensive experience of the promoters and their funding support Benefits from the promoters' experience of two decades in aluminum trading and their funding support should back the business. Outlook: Stable CRISIL believes BAEPL will benefit from the extensive experience of its promoters and their funding support. The outlook may be revised to 'Positive' if stabilisation of operations leads to anticipated revenue, profitability, and cash accrual. The outlook may be revised to 'Negative' if delay in the implementation or stabilisation of the project leads to lower-than-expected revenue and cash accrual, or if stretch in working capital cycle weakens financial risk profile, especially liquidity. Incorporated in 2017, Lucknow, Uttar Pradesh-based BAEPL has set up an aluminum extrusion facility operational from July 2018. Mr. Kapil Agarwal and Mr. Manish Agarwal manage the operations. BMR GOLD: CRISIL Assigns B+ Rating to INR6cr Cash Credit -------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank loan facilities of BMR Gold and Diamonds (BMRGAD). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Open Cash Credit 6 CRISIL B+/Stable (Assigned) Proposed Cash Credit Limit 5 CRISIL B+/Stable (Assigned) Rating reflects firm's modest scale of operations and below average financial risk profile marked by its modest net worth and moderate gearing however supported by moderate debt protection metrics. These weaknesses are partially offset by extensive experience of its promoters. Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations: Scale of operations remain modest with estimated revenues of around INR11.86 crore in Fiscal 2018. Modest scale of operations constrains the business risk profile. Furthermore the company does not have any expansion plan over the next two years * Below average financial risk profile: Financial risk profile is average marked by modest net worth, moderate debt protection metrics and gearing. Net worth was low at INR3 crore against total debt outstanding of INR4.31 crore resulting in gearing of around 1.42 times as on March 31 2018. Debt protection metrics was moderate as reflected in interest coverage ratio and net cash accruals to adjusted debt of around 1.52 times and 0.05 for the Fiscal 2018. CRISIL believes that BMRGAD's financial risk profile will remain almost same over the medium term on account of modest net worth. Strengths * Extensive experience of promoters: Over the years the promoter has developed keen sense about the pricing and hedging of gold resulting in prudent strategy/management of inventory. Furthermore promoter has been able promote the brand image resulting in moderate foothold in the local market supporting the business risk profile of the company. Outlook: Stable CRISIL believes BMRGAD will continue to benefit over the medium term from the promoters' extensive experience in the business. The outlook may be revised to 'Positive' in case of substantial improvement in scale of operations and profitability, while the capital structure remains stable. Conversely, the outlook may be revised to 'Negative' if the financial risk profile weakens owing to decline in profitability, stretch in working capital cycle, or any large debt-funded capital expenditure. Set up in 2007, Sri Vijaya Venkata Ramana Jewellery Mart (BMRGAD) later name changed to BMR Gold and Diamonds is engaged in retail jewelry business. The firm is managed by Mr. Shankar Rao. BRIGHT FAME: CRISIL Assigns B+ Rating to INR8cr Cash Loan --------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facilities of Bright Fame International (BFI). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8 CRISIL B+/Stable (Assigned) The rating reflects a weak capital structure and a modest operating margin, which remains susceptible to volatility in prices of traded commodities and foreign exchange (forex) rates. These weaknesses are partially offset by the extensive experience of the proprietor in the spice trading industry and a controlled working capital cycle. Key Rating Drivers & Detailed Description Weaknesses * Weak capital structure: The gearing and total outside liabilities to tangible networth ratio are high, estimated at 5.72 times and 6.36 times, respectively, while the networth is estimated at a modest at INR1.55 crore, as on March 31, 2018. * Susceptibility of the operating margin to volatility in the traded commodities and forex rates: Profitability is vulnerable to adverse movements in the prices of cumin seeds and other spices traded in. Any sharp change in prices would be a key rating sensitivity factor. The margin is also sensitive to forex rate fluctuation as the entire revenue is derived from exports. * A modest operating margin, driven by the fragmented industry structure: The spice trading industry is largely unorganised, which, along with the commoditised nature of the products, has led to intense competition. This limits negotiating power with customers, leading to a low operating profitability margin of 1.0- 1.2%. Strengths * Extensive industry experience of the proprietor: A presence of more than ten years in the agro products industry has enabled the proprietor to develop strong industry insight, anticipate price trends, and calibrate purchasing and stocking decisions. * Prudent working capital management: Gross current assets are low, estimated at 26 days, due to receivables of 23 days and export incentive receivables, as on March 31, 2018. Against this, payables stood at 4 days. The working capital cycle is expected to remain steady over the medium term. * Proximity to an agro-commodity growing region: The packing facilities are located in Unjha, Gujarat, where the crop is grown. This leads to easy availability of seeds and mitigates inventory risk. Outlook: Stable CRISIL believes BFI will continue to benefit from the extensive industry experience of its proprietor. The outlook may be revised to 'Positive' in case of higher-than-expected sales and profitability, leading to improvement in the financial risk profile. The outlook may be revised to 'Negative' in case of lower-than-expected profitability or a stretch in the working capital cycle, resulting in deterioration in the financial risk profile. BFI was set up in September 2011 as a proprietorship firm by Mr Niraj Prabhu Das Patel. The firm exports cumin seeds, spices, cereals, maize, grains, pulses, and pickles. Its registered office is I Unjha. CEE DEE: Ind-Ra Affirms 'BB+' LT Issuer Rating, Outlook Stable -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Cee Dee Vacuum Equipment Private Limited's (CDVEPL) Long-Term Issuer Rating at 'IND BB+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR120 mil. (increased from INR90 mil.) Fund-based limits affirmed with INDBB+/Stable/IND A4+ rating; -- INR200 mil. (increased from INR185 mil.) Non-fund-based limits affirmed with IND A4+ rating; and -- INR49.70 mil. (increased from INR45 mil.) Term loans due on March 2023 affirmed with BB+/Stable rating. KEY RATING DRIVERS The affirmation reflects CDVEPL's continued small scale of operations. Revenue rose to INR557 million in FY18 (FY17: INR323 million) on account of a higher number of orders obtained and executed. FY18 financials are provisional. CDVEPL has booked revenue of INR231 million for 1QFY19 and has work orders worth INR237 million for execution during FY19. Ind-Ra expects revenue to continue to grow in FY19 in view of the additional orders received. The ratings are constrained by CDVEPL's moderate credit metrics, due to its dependence on external debts. EBITDA interest coverage ratio (operating EBITDA/gross interest expense) increased to 3.7x in FY18 (FY17: 2.8x) whereas net leverage (Ind-Ra adjusted net debt/operating EBITDAR) reduced to 2.27x (3.8x) with an improvement in absolute operating EBITDA. The ratings also factor in CDVEPL's long working capital cycle due to the nature of business. The cycle increased to around 114 days in FY18 (FY17: 94 days) on account of higher receivable days and lesser creditor days. Furthermore, the liquidity position is moderate, as reflected in its fund-based facility being utilized at an average rate of 84.5% during the 12 months ended July 2018. Also, the cash and cash equivalents were just 0.7 million on March 31, 2018. The ratings are supported by CDVEPL's healthy EBITDA margins of 15.9% in FY18 (FY17: 13.5%) with RoCE of 17%. The margins improved due to segment diversification and lower cost of the materials consumed. Also, the company increased the percentage of revenues from the project-based business which fetches higher margins. The ratings are also supported by the company's promoters' over 25 years of experience in designing and manufacturing transformer oil regeneration plants. RATING SENSITIVITIES Positive: Any significant improvement in the scale of operations while sustaining the EBITDA margin leading to an improvement in the credit metrics on a sustained basis could lead to a positive rating action. Negative: Any significant decline in the revenue and/or EBITDA margin leading to deterioration in the credit metrics on a sustained basis could result in a negative rating action. COMPANY PROFILE Incorporated in 1988, CDVEPL is a Pune-based company promoted by Mr. Suhas Sopanrao Dhamle and Mr. Nitin Sopanrao Dhamle. The company is engaged in the design, development, manufacture, and installation and commissioning of electrical equipment such as transformer oil filtration machines, vacuum pressure impregnation plants and oil dehydration equipment. The company has a plant in Bhosari and Chakan in Pune, Maharashtra. CHAMPION OM: CRISIL Assigns B+ Rating to INR13.75cr Cash Loan ------------------------------------------------------------- CRISIL has assigned its rating of 'CRISIL B+/Stable' to the long- term bank facility of Champion Om Dev Construction Limited (CODCL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 13.75 CRISIL B+/Stable (Assigned) The ratings reflect the below-average financial risk profile, working capital intensive operations, and susceptibility to volatility in prices of agricultural commodities and changes in regulations. These weaknesses are partially offset by promoters' industry experience and funding support. Key Rating Drivers & Detailed Description Weakness * Below-average financial risk profile marked by aggressive capital structure: Financial risk profile is below average with networth at INR5.5 crore and gearing at 4.21 times estimated as on March 31, 2018. The TOLTWN remains high at 7.17 times estimated as on March 31, 2018. Debt protection metrics was average with interest coverage of 1.7 times and NCATD of 0.11 times during fiscal 2017. * Working capital intensive operations: Gross current assets were at 112 days, driven by inventory of 78 days, and debtors of 39 days as on March 31, 2017. * Susceptibility to volatility in raw material prices and changes in regulations: The company is vulnerable to the risk of unfavorable supply and price volatility of agricultural commodities. In addition, the company faces the risk of tender nature of business for sand mining and stone crushing. Strength * Promoters' industry experience and funding support: The company will benefit from its promoters' experience of more than a decade in the industry. Moreover, they have supported operations through unsecured loans as and when required. Outlook: Stable CRISIL believes CODCL will continue to benefit from its promoters' extensive industry experience and its established relationship with suppliers and customers. The outlook may be revised to 'Positive' if a significant and sustainable increase in revenue and profitability results in substantial rise in net cash accrual, leading to better liquidity. The outlook may be revised to 'Negative' if the company is adversely impacted by regulatory change, or if working capital management weakens, or if the company undertakes large, debt funded capital expenditure, leading to deterioration in liquidity and capital structure. Incorporated in 2008, the company is engaged in crushing of stones. The manufacturing facility is based in Palamu, Jharkhand. In addition, the company is also engaged in trading of sand, and agricultural commodities and provides for the logistics for distribution of food grains in Bihar. CONCORD HOSPITALITY: Ind-Ra Maintains D Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Concord Hospitality Private Limited's Long-Term Issuer Rating in the non- cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR516.5 mil. Term loan (long-term) maintained in Non- Cooperating Category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on July 4, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated on September 29, 2005, Concord Hospitality operates a five-star hotel in Amritsar. The company has tied up with Radisson Hotels International Inc. through the latter's parent company Carlson Hotels Asia Pacific, Singapore. DIGIFLIC CONTROLS: Ind-Ra Maintains B+ Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Digiflic Controls (India) Private Limited's Long-Term Issuer Rating in the non-cooperating category. The issuer did not participate in the rating exercise, despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR16.79 mil. Long-term loan maintained in Non-Cooperating Category with IND B+ (ISSUER NOT COOPERATING) rating; -- INR60 mil. Fund-based Limit maintained in Non-Cooperating Category with IND B+ (ISSUER NOT COOPERATING) rating; and -- INR40 mil. Bank Guarantee maintained in Non-Cooperating Category with IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on May 26, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 2005, Digiflic Controls is a Bengaluru-based company engaged in the design, manufacture and installation of solar-based products. FASTBUILD BLOCKS: Ind-Ra Raises Long Term Issuer Rating to 'BB-' ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded Fastbuild Blocks Private Limited (FBBPL) Long-Term Issuer Rating to 'IND BB-' from 'IND B+ (ISSUER NOT COOPERATING)'. The Outlook is Stable. The instrument-wise rating actions are: -- INR112 mil. (reduced from INR130 mil.) Long term loans due on March 2023 upgraded with IND BB-/Stable rating; -- INR50 mil. Fund-based limits upgraded with IND BB-/Stable rating; and -- INR30 mil. Proposed fund-based limits withdrawn (issuer is no longer proceeding with the instrument as envisaged) and the rating is withdrawn. KEY RATING DRIVERS The upgrade reflects FFBPL's improvement in revenue to INR217 million in FY18 (FY17: INR176 million), driven by market expansion in various regions of Odisha. FY18 financials are provisional in nature. The upgrade also reflects FFBPL's improvement in credit metrics in FY18 due to an improvement in absolute EBITDA. The interest coverage ratio was 1.6x in FY18 (FY17:1.4x) and net leverage was 5.5x (6.1x). However, the company's scale of operations remains small. Also, the credit profile continues to be modest due to high debt. The ratings also factor in the company's moderate operating margin of 21.1% in FY18 (FY17: 23.2%) with ROCE of 13.9% (12.7%). The margin declined due to an increase in cost of spares and consumables. Moreover, the liquidity position is weak, as reflected by 98.94% utilization of the fund-based facilities in the 12 months ended July 2018. The ratings however continue to be supported by FBBPL's business monopoly in Odisha, Bihar and Jharkhand region and its strong clientele base, which includes Larsen and Turbo Ltd, Simplex Infrastructure Ltd, JRCL Infra Limited. RATING SENSITIVITIES Negative: A sustained decline in the revenue and credit metrics could lead to a negative rating action. Positive: A sustained improvement in the revenue, credit metrics and liquidity could lead to a positive rating action. COMPANY PROFILE FBBPL was incorporated in 2012 by Mr. Ashish Rungta and two other directors in Odisha. It manufactures autoclaved aerated concrete blocks at a capacity of 150,000 cubic meters per annum. GLOBARENA TECH: Ind-Ra Maintains B+ LT Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Globarena Technologies Private Limited's Long-Term Issuer Rating in the non- cooperating category. The issuer did not participate in the rating exercise, despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the ratings. The rating will continue to appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR70 mil. Fund-based working capital limits maintained in non-cooperating category with IND B+ (ISSUER NOT COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on July 20, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in April 2000, Globarena Technologies is an IT enabled service organization, which offers a wide range of learning, examination and assessment solutions. GREEN POWER: CRISIL Lowers Rating on INR105cr Term Loan to D ------------------------------------------------------------ CRISIL has downgraded the ratings on the bank facilities of Green Power Sugars Ltd (GPSL) from 'CRISIL BB-/Stable Issuer Not Cooperating' to 'CRISIL D'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 105 CRISIL D (Downgraded from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') Due to inadequate information, CRISIL, in line with Securities and Exchange Board of India (SEBI) guidelines, had migrated the ratings on the bank facilities of GPSL to 'CRISIL BB-/Stable Issuer Not Cooperating'. However, the management has subsequently started sharing the requisite information for carrying out a comprehensive review of the ratings. Consequently, CRISIL is downgrading the ratings on the bank facilities of GPSL from 'CRISIL BB-/Stable Issuer Not Cooperating' to 'CRISIL D'. The downgrade reflects instances of delays in term debt payments on account of stretched liquidity. The rating also considers weak financial risk profile because of high total outside liabilities to adjusted net worth (TOLANW) and subdued debt protection metrics, large working capital requirement, and susceptibility to regulatory risks. However, it benefits from the extensive experience of promoters in sugar industry. Key Rating Drivers & Detailed Description * Delay in term loan repayment: There are instances of delays in term debt payments on account of stretched liquidity. Weakness * Large working capital requirement: Gross current assets are estimated at 378 days as on March 31, 2018, due to sizeable inventory. * Below-average financial risk profile: The financial risk profile is constrained by weak capital structure (TOLANW of over 12 times as on March 31, 2018) and modest interest coverage ratio of 1.5 times in fiscal 2018. * Exposure to regulatory changes and cyclicality in the sugar industry: The sugar industry is highly regulated and exposed to risks related to seasonality in sugar cane production, which may constrain revenue and operating margin. Strength * Experience of promoter: Benefits from the promoter's experience of over two decades and strong understanding of the local market dynamics should continue to support the business. GPSL, incorporated in 2006 and promoted by the Deshmukh family, has an integrated sugar plant, with crushing capacity of 3500 tonne per day, along with a distillery with capacity of 30 kilolitre per day and a 16.8-megawatt cogen power plant, at Gopuj in Satara, Maharashtra. HAQ STEELS: Ind-Ra Moves BB LT Issuer Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated HAQ Steels Private Limited's (HSPL) Long-Term Issuer Rating to the non- cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these rating. The rating will now appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR180 mil. Fund-based working capital limits migrated to Non-Cooperating Category with IND BB (ISSUER NOT COOPERTAING)/IND A4+ (ISSUER NOT COOPERTAING) rating; and -- INR146.5 mil. Term loan due on September 2022 migrated to Non-Cooperating Category with IND BB (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on August 29, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Established in 2013, HAQ Steels manufactures thermo mechanically treated steel bars at its 108,000-metric-tonne-per-annum plant. The company sells its product under the brand German. IRAKI TRADING: Ind-Ra Moves BB Issuer Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Iraki Trading Co.'s Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise, despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR40 mil. Fund-based working capital limits migrated to Non- Cooperating Category with IND BB (ISSUER NOT COOPERATING) / IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR75 mil. Non-fund-based working capital limits migrated to Non-Cooperating Category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on August 29, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Established in 1994, Iraki Trading Co. is engaged in the trading of pig iron and acts as a carrying and forwarding agent for SLR Metaliks Ltd. KALYANALAKSHMI SHOPPING: Ind-Ra Affirms B+ Rating, Outlook Stable ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Kalyanalakshmi Shopping Mall's (KLSM) Long-Term Issuer Rating at 'IND B+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR100 mil. (increased from INR85 mil.) Fund-based working capital limits affirmed with IND B+/Stable/IND A4 rating; -- INR35 mil. Proposed fund-based working capital limits* withdrawn (the company did not proceed with the instrument as envisaged) and the rating is withdrawn; and -- INR20 mil. Proposed fund-based working capital limits* assigned with Provisional IND B+/Stable/Provisional IND A4 rating. * The rating is provisional and shall be confirmed upon the sanction and execution of loan documents for the above facility by KLSM to the satisfaction of Ind-Ra. KEY RATING DRIVERS The affirmation reflects KLSM's moderate margins and modest credit metrics on account of its presence in the intensely competitive and highly fragmented cloth retailing industry. Also, the scale of operations remains small. According to FY18 provisional financials, EBITDA margin was moderate at 8.0% in FY18 (FY17: 6.8%) with ROCE of 16.6% (17.9%). Its interest coverage (operating EBITDA/gross interest expense) was stable at 1.2x in FY18 (FY17: 1.2x) and net leverage (adjusted net debt/operating EBITDAR) deteriorated to 5.1x in FY18 (FY17: 4.4x). The latter was on account an increase in short-term debt due to meet working capital requirements. Revenue declined to INR320.0 million in FY18 (FY17: INR394.1 million) due to reduced order inflow. The ratings continue to be constrained by the firm's tight liquidity profile, indicated by its almost full utilization of the fund-based working capital facilities during the 12 months ended July 2018. The ratings, however, are supported by the company's partners' experience of more than two decades in garment trading and the location of the mall in a prime area, i.e. Warangal, Telangana. RATING SENSITIVITIES Negative: A decline in the revenue and/or EBITDA margin leading to deterioration in the credit metrics and liquidity profile on a sustained basis will be negative for the ratings. Positive: An increase in the revenue while the EBITDA margin, credit metrics and liquidity profile staying at or improving from the current level on a sustained basis will be positive for the ratings. COMPANY PROFILE KLSM was established in 2011 as a partnership firm. The firm is engaged in the trading of ready-made garments. It has one outlet in Warangal, Telangana. KASTURCHAND FERTILIZERS: Ind-Ra Maintains B+ in Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Kasturchand Fertilizers (P) Ltd.'s Long-Term Issuer Rating in the non- cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR100 mil. Cash credit working capital facilities maintained in Non-Cooperating Category with IND B+ (ISSUER NOT COOPERATING) rating; and -- INR5.5 mil. Non-fund-based working capital limits maintained in Non-Cooperating Category with IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on August 16, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Established in 1995, Kasturchand Fertilizers manufactures nitrogen, phosphorus and potassium and single super phosphate fertilizers. KISAN SHAKTI: CRISIL Assigns B+ Rating to INR12.5cr Loan -------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating on the long-term bank facility of Kisan Shakti Krushi Udyog Private Limited (KSK). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Warehouse Receipts 12.5 CRISIL B+/Stable (Assigned) The rating reflects KSK's constrained financial risk profile because of leveraged capital structure and average debt protection metrics, driven by its working capital-intensive operations and its modest scale in a competitive NPK mixture fertilizer industry. These weaknesses are partially offset by the extensive industry experience of its promoters and established marketing network. Key Rating Drivers & Detailed Description Weaknesses * Constrained financial risk profile: Financial risk profile remains constrained by modest networth and high gearing (Rs 4.6 crore and 3.7 times, respectively, as on March 31, 2018). Debt protection metrics are average, with interest coverage of 1.9 times and net cash accrual to total debt of 0.06 time in fiscal 2018. The gross current asset (GCA) days remain high at over 210 days due to large inventory and credit offered to customers, leading to large working capital requirements. High reliance on bank debt to fund these requirement constrains the capital structure and overall financial risk profile. * Modest scale of operation in a competitive industry: Scale of operations remains modest, with revenue of less than INR35 crore in last four fiscals through 2018. . Intense competition in the NPK fertilisers business and localized presence constrains scalability, and therefore, profitability. The fertiliser industry is strategically important to the economy, and should therefore continue to be regulated by the government. PAPL's operations remain exposed to the risk of unfavourable regulations related to its products along with extent of monsoon in area of operations. Strength * Extensive experience of promoters: Presence of over two decades in the agriculture and fertilizer sector has enabled the promoters to establish relations with customers and suppliers and sustain operations despite cyclicality. Outlook: Stable CRISIL believes KSK will continue to benefit over the medium term from the extensive industry experience of its promoters. The outlook may be revised to 'Positive' if higher-than-expected revenue growth and profitability leads to healthy cash accrual and improvement in capital structure. The outlook may be revised to 'Negative' if substantially low cash accrual, sizeable working capital requirement, or unanticipated debt-funded capital expenditure weakens liquidity. Set up in 1999 and currently promoted by Mr. Santosh R Chidrawar KSK is engaged in manufacturing NPK mixture fertilizers at its facility in Mandva, Yavatmal. MTAR TECHNOLOGIES: CRISIL Withdraws C Rating on INR30cr Cash Loan ----------------------------------------------------------------- CRISIL has withdrawn its ratings on the bank facilities of MTAR Technologies Private Limited (MTAR) at the company's request and receipt of no objection certificate from State Bank of India. The rating action is in line with CRISIL's policy on withdrawal of its bank loan ratings. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 85 CRISIL A4/Issuer Not Cooperating (ISSUER NOT COOPERATING; Rating Withdrawn) Cash Credit 30 CRISIL C/Issuer Not Cooperating (ISSUER NOT COOPERATING; Rating Withdrawn) Letter of Credit 5 CRISIL A4/Issuer Not Cooperating (ISSUER NOT COOPERATING; Rating Withdrawn) Standby Line of Credit 5 CRISIL A4/Issuer Not Cooperating (ISSUER NOT COOPERATING; Rating Withdrawn) CRISIL has been consistently following up with MTAR for obtaining information through letters and emails dated December 31, 2017 and June 29, 2018, among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company'. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of MTAR. This restricts CRISIL's ability to take a forward-looking view on the credit quality of the entity. CRISIL believes that the information available for MTAR is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB rating category or lower.' Based on the last available information, the rating on bank facilities of MTAR continues to be CRISIL C/CRISIL A4 Issuer Not Cooperating. CRISIL has withdrawn its ratings on the bank facilities of MTAR at the company's request and receipt of no objection certificate from State Bank of India. The rating action is in line with CRISIL's policy on withdrawal of its bank loan ratings. MTAR, established in 1970, is promoted by Mr P Ravindra Reddy, Mr K Satyanarayana Reddy, and Mr P Jayprakash Reddy. The ISO 9001- 2000-certified company manufactures precision machined parts and major equipment for ISRO, DAE, Nuclear Power Corporation of India Ltd, defence organisations, and overseas clients. MTAR has seven manufacturing units in Balanagar in Hyderabad (Telangana). MUKAND SYSTEM: Ind-Ra Maintains BB+ LT Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Mukand System & Networking Pvt Ltd.'s Long-Term Issuer Rating in the non- cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR32.5 mil. Fund-based limits maintained in Non-Cooperating Category with IND BB+ (ISSUER NOT COOPERATING) rating; and -- INR40 mil. Non-fund-based limits maintained in Non- Cooperating Category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on June 9, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 2005, Mukand System & Networking is a passive telecommunication infrastructure provider in northeastern India. It is primarily engaged in leasing, laying and maintenance of optical fiber cables for various industries such as telecom and Internet services. The company has a 2,900km optical fiber cable network, which covers intra-city and national long-distance lines. Its promoter-directors are Mr. Rishi Gupta and Mrs. Anita Gupta. NEYSA JEWELLERY: CRISIL Reaffirms D Rating on INR42.79cr LT Loan ---------------------------------------------------------------- CRISIL has reaffirmed its 'CRISIL D/CRISIL D' ratings on the bank facilities of Neysa Jewellery Limited (NJL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bill Discounting 9.37 CRISIL D (Reaffirmed) Export Packing Credit 7.58 CRISIL D (Reaffirmed) Funded Interest Term Loan 20.48 CRISIL D (Reaffirmed) Packing Credit 26.67 CRISIL D (Reaffirmed) Post Shipment Credit 31.39 CRISIL D (Reaffirmed) Proposed Long Term Bank Loan Facility 42.79 CRISIL D (Reaffirmed) Term Loan 2.11 CRISIL D (Reaffirmed) Working Capital Term Loan 34.61 CRISIL D (Reaffirmed) The ratings continue to reflect liquidity mismatch, driven by elongated working capital cycle, resulting in instances of delay in servicing debt repayment obligations. This weakness is partially offset by the extensive experience in the jewellery industry and fund support from promoters. Key Rating Drivers & Detailed Description Weakness: * Instances of delay in servicing of repayments: Working capital- intensive operations have resulted in high reliance on external debt and liquidity mismatch leading to delay in servicing of repayments. Gross current asset were high at 513 days as on March 31, 2017 majorly on account of elongated debtor cycle indicated by debtors of 403 days. Strength: * Extensive experience in the jewellery industry and fund support from promoters: NJL's partners have experience of around 3 decades in the jewellery business. Backed by promoters experience, firm also has established its market presence in the jewellery manufacturing business resulting in addition of new customers. Further promoters have also supported by infusion of funds in form of preference shares. Set up in 1996, NJL is promoted by Mr. Pravin Shah and his family members and is engaged in the manufacturing and export of gold and silver jewellery. Its manufacturing unit is located in Santacruz Electronic Export Processing Zone (SEEPZ), Mumbai. NOVELTY SALES: Ind-Ra Maintains 'B' LT Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Novelty Sales' Long-Term Issuer Rating in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND B (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR40 mil. Fund-based working capital Limit maintained in Non-Cooperating Category with IND B (ISSUER NOT COOPERATING)/ IND A4 (ISSUER NOT COOPERATING) rating; -- INR30 mil. Non-Fund Based limits maintained in Non- Cooperating Category with IND A4 (ISSUER NOT COOPERATING) rating; and -- INR20 mil. Proposed fund-based working capital limit maintained in Non-Cooperating Category with Provisional IND B (ISSUER NOT COOPERATING)/ Provisional IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on July 6, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 2012, Novelty Sales is an authorized distributor of Mobis India Private Limited's (sister concern of Hyundai Motors India Limited) products in Amritsar, Punjab. P.V. INFRA: CRISIL Assigns B Rating to INR4.5cr Secured Loan ------------------------------------------------------------ CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the bank facilities of P.V. Infra Projects Private Limited (PVIPL). The ratings reflect modest scale of operations in intensely competitive industry, large working capital requirement and subdued debt protection metrics. These weaknesses are partially offset by extensive experience of PVIPL's promoter in the civil construction industry, healthy order book and moderate capital structure. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Secured Overdraft Facility 4.5 CRISIL B/Stable (Assigned) Bank Guarantee 2 CRISIL A4 (Assigned) Proposed Long Term Bank Loan Facility 3.5 CRISIL B/Stable (Assigned) Analytical Approach CRISIL has treated unsecured loans from promoters as debt, since these are not subordinated to bank debt. Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations: Scale of operations is small with revenue of INR12.87 crore in fiscal 2018. The segment is highly fragmented and has numerous small-scale unorganised players catering to local demand, which may restrict significant improvement in scale of operations and constrain profitability. * Large working capital requirements: Operations are working capital intensive, as reflected in gross current assets of 427 days as on March 31, 2018, on account of stretched receivables cycle of around 315 days. Further, need to provide earnest money, security deposit, and bank guarantees, augments working capital requirements. . * Subdued debt protection metrics: PVIPL has recorded subdued debt protection metrics marked by interest coverage ratio of 1.4 times and net cash accruals to total debt of 0.05 time in fiscal 2018. Strengths * Extensive experience of the promoter: Benefits derived from the promoter's extensive experience of around a decade should continue to support the business. The company has healthy order book of INR30 crore as of July 2018 to be executed over the next 24 months, which gives revenue visibility over the medium term. * Average capital structure: PVIPL's capital structure is marked by moderate gearing of 1.09 times and total outside liabilities to adjusted tangible networth of 2.38 times as on March 31, 2018. CRISIL expects the capital structure to remain at similar level for the near term. Outlook: Stable CRISIL believes PVIPL will continue to benefit over the medium term from the experience of the promoter. The outlook may be revised to 'Positive' if sustained increase in scale of operations, profitability, and cash accrual strengthens financial risk profile and liquidity. Conversely, the outlook may be revised to 'Negative' if sizeable working capital requirement, decline in revenue or profitability, or large, debt-funded capital expenditure weakens financial risk profile and liquidity. Incorporated in 2009, by Mr. Uday Bhanu Samineni and Mr. Samineni Venkata Krishna Prasad, PVIPL, undertakes civil construction activity for Public Works Department in Andhra Pradesh. PGSD AGRO: CRISIL Assigns B+ Rating to INR5cr Cash Loan ------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long term bank facilities of Pgsd Agro Industries Private Limited (PAIPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL B+/Stable (Assigned) Proposed Working Capital Facility 5 CRISIL B+/Stable (Assigned) The ratings reflect modest scale of operations, susceptibility to volatility in raw material prices and its availability and average financial risk profile. These weaknesses are partially offset by promoter's extensive experience in the rice milling business. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations: PAIPL's scale of operations is modest with reported revenues of Rs18.3 crores during fiscal 2018. The revenue had remained in the range of INR18 crore to INR25.5 crore over the past three years through 2018. * Susceptibility to volatile raw material prices: PAIPL's operating margin has been volatile in the range of 4.8% to 6.5% in last three years through 2018. Its revenue and operating margin is susceptible to availability of and volatility in prices of paddy. Changes in climatic conditions, uneven monsoon can led to variation in paddy production and its prices may impact the income and earnings of rice players. * Average financial risk profile: Gearing was moderately high estimated at 1.87 times as on March 31, 2018, due to low networth of INR3.49 crore and sizable working capital debt. Interest coverage and net cash accrual to adjusted debt ratios remained average and were estimated at 1.9 times and 0.09 time, respectively, for fiscal 2018. Strength * Promoter's extensive industry experience: Promoters of PAIPL have an extensive experience of more than a decades in rice milling business. Their extensive experience has enabled the firm to maintain established relationship with its customer and suppliers. Outlook: Stable CRISIL believes that PAIPL will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if sustained improvement in scale of operations and profitability leads to higher-than- expected cash accruals. Conversely, the outlook may be revised to 'Negative' if the financial risk profile especially liquidity weakens because of low cash accruals or stretched working capital cycle or any large, unanticipated debt funded capex. PAIPL was incorporated in the year 2014 by Mr. Sharvan Kumar. It is based at Gorakhpur, U.P (State). RELIANCE INFRASTRUCTURE: Ind-Ra Raises LT Issuer Rating to 'C' -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded Reliance Infrastructure Limited's (RIL) Long-Term Issuer Rating to 'IND C' from 'IND D'. The instrument-wise rating actions are: -- INR180 mil. Bank facilities affirmed with IND C/IND A4 rating; -- INR13 mil. Short-term debt/commercial paper (CP) due on May-August 2018 affirmed with IND A4 rating; -- INR9.25 mil. Non-convertible debentures (NCDs) affirmed with IND C rating; -- INR1.25 mil. NCDs^ withdrawn and the rating is withdrawn; -- INR0.75 mil. NCDs^ withdrawn and the rating is withdrawn; -- INR1.75 mil. NCDs^,* withdrawn and the rating is withdrawn; -- INR6.7 mil. Term loans* issued on March 2014-January 2015 has a coupon rate of 10% - 11.05% due on September 2019 withdrawn and the rating is withdrawn; and -- INR5 mil. CP# due on May-October 2018 withdrawn and the rating is withdrawn. ^Paid in full * Secured against regulatory asset collection in R-Infra's Mumbai distribution business # Backed by an irrevocable, unconditional and non-transferable standby letter of credit from ICICI Bank Ltd (Fitch Ratings Ltd: Issuer Default Rating: BBB-/Stable/F3). The payment mechanism, as defined in the transaction documents, provides for the payment through the invocation of the standby letter of credit to the beneficiary's account before/on the due date of the proposed CP. KEY RATING DRIVERS The upgrade of the Long-Term Issuer Rating reflects the payment of all outstanding over dues from the sale proceeds of Mumbai power transaction. Ind-Ra has received a written confirmation from RIL stating that there are no over-dues as of September 1, 2018. Following the closure of the deal, R-Infra has informed the stock exchanges on 30 August 2018 regarding the repayment of INR3.75 billion NCDs, INR6.7 billion term loans and INR5 billion CPs, using the sale proceeds. Ind-Ra has withdrawn the ratings on the company's request and receipt of Statutory Auditor Report confirming the repayment of NCDs. Ind-Ra has verified the repayments of term loans from bank statements and that of CP from the issuing and payment agent. In December 2017, R-Infra had entered into a definitive agreement with Adani Transmission for the 100% sale of its integrated Mumbai power business. The total deal value was INR132.5 billion, which included businesses valued at INR121 billion and approved regulatory assets of INR11.5 billion. In addition, the company has about INR50 billion of regulatory assets under approval. The total consideration value was estimated at INR188 billion. RATING SENSITIVITIES Positive: A sustained improvement in the credit profile will be positive for the ratings. Negative: Any delay in debt servicing will be negative for the ratings. COMPANY PROFILE R-Infra is the flagship company of the India-based Reliance Group, led by Anil Dhirubhai Ambani, active in the energy and infrastructure businesses. R-Infra's standalone operations initially constituted a vertically integrated power generation, transmission and distribution business catering to parts of Mumbai city. R-Infra also has an in-house engineering-procurement- construction division active in power and road segments. Following the sale of Mumbai division business, R-Infra will be left with the engineering-procurement-construction business. RELIANCE NAVAL: IDBI Bank Files Insolvency Case v. Firm ------------------------------------------------------- Livemint.com reports that IDBI Bank Ltd has approached the dedicated bankruptcy court against Reliance Naval and Engineering Ltd for defaulting on loans totaling more than INR1,250 crore. Reliance Naval, part of Anil Ambani-controlled Reliance Group, is a private shipbuilder with license and contracts to build warships. According to the report, the state-run bank has approached the Ahmedabad bench of the National Company Law Tribunal (NCLT) against Reliance Naval to initiate a resolution process against the company. Reliance Naval owes a total of INR5,349.17 crore to its lenders as on March 2018, Livemint.com discloses. "As per the valuation report of March 2018, the company's net market value stood at INR1,880 crore while its fair market value by another valuer was around INR1,535 crore as on May 21, 2018," IDBI said in its petition, Livemint.com relays. Nishit Dhruva, managing partner of law firm MDP and Partners, who is representing IDBI Bank, confirmed the filing of the petition but declined to elaborate, says Livemint.com. Livemint.com, citing the petition, discloses that Reliance Naval is facing financial stress due to a downtrend in commercial shipbuilding sector, cancellation of contracts and cost overrun of dry dock-2 project under construction. Reliance Naval, which is controlled by Reliance Infrastructure Ltd, was previously known as Reliance Defence and Engineering Ltd. On March 4, 2015, Reliance Defence Systems, a unit of Reliance Infrastructure Ltd, acquired Pipavav Defence -- then the country's largest shipyard with a license to build warships -- and rechristened it. Livemint.com relates that a group of lenders led by IDBI Bank has been trying to restructure debt on the books of Reliance Naval ever since it acquired debt-laden Pipavav Defence and Offshore Engineering, which was undergoing restructuring under the corporate debt restructuring (CDR) scheme. In 2017, the lenders gave their nod to Reliance Naval's CDR exit plan with a longer maturity period for loans of about INR6,800 crore, Livemint.com recalls. It even gave its go-ahead for implementing a refinancing scheme. The company was however declared a non-performing asset in February this year after the Reserve Bank of India introduced a framework for stressed asset resolution, says Livemint.com. According to Livemint.com, Reliance Naval was also in discussions with lenders for a one-time settlement but lack of a resolution led the lenders to proceed with insolvency proceedings. Reliance Naval's consolidated loss almost doubled in the last financial year to INR1,011.97 crore from INR577.22 crore in the previous year. Net sales fell 33% to INR378.48 crore at the end of March 2018, Livemint.com discloses. Reliance Group companies have sued HT Media Ltd, Mint's publisher, and nine others in Bombay high court over a Oct. 2, 2014 front- page story that they have disputed. HT Media is contesting the case, the report notes. Reliance Defence and Engineering Limited (RNAVAL) (formerly Reliance Defence and Engineering Limited/Pipavav Defence and Offshore Engineering Company Limited) (PDOECL) has the largest engineering infrastructure in India and is one of the largest in the world. RNAVAL is the first private sector company in India to obtain the license and contract to build warships. S.S. OVERSEAS: CRISIL Migrates B Rating to Not Cooperating ---------------------------------------------------------- CRISIL has migrated the rating on bank facilities of S.S. Overseas (SSO; part of the SS group) to 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 19.94 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) Long Term Loan .06 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with SSO for obtaining information through letters and emails dated May 31, 2018 and June 30, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of S.S. Overseas. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on S.S. Overseas is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of S.S. Overseas to 'CRISIL B/Stable Issuer not cooperating'. For arriving at the ratings, CRISIL has combined the business and financial risk profiles of SSO and S. S. Agro (SSA), because the two firms, together referred to as the SS group, are in the same line of business, with common promoters and management, and strong financial linkages. CRISIL has also considered unsecured loans extended by the group's promoters, as neither debt nor equity, as they bear an interest rate that is lower than the market rate, and have been in the business for over three years. The SS group, based in Jalalabad, district Bhatinda (Punjab), is managed by Mr Pravesh Kumar and his brothers. Both SSA and SSO process and sell basmati rice. S. K. MASALA: CRISIL Migrates B+ Rating to Not Cooperating ---------------------------------------------------------- CRISIL has migrated the rating on bank facilities of S. K. Masala and Foods Limited (SK Masala) to CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5.6 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with SK Masala for obtaining information through letters and emails dated May 31, 2018 and June 30, 2018, among others, apart from telephonic communication. However, the issuer has remained non cooperative.' The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SK Masala which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SK Masala is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of SK Masala to CRISIL B+/Stable Issuer not cooperating'. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. SK Masala was established as a partnership firm named M/s S Khusaldas and Co. over four decades ago by Panjwani family and was reconstituted as a closely held limited company with the present name in March 2017. The company manufactures, processes and trades blended spices, grounded spices, flour, Instant ' ready mix food, pickle and ghee'sold under the brand name of 'SK Masala'. Operations are managed by Mr Barkatali Panjwani, Mr Salim Panjwani and family. Its manufacturing facility is located near Surat, Gujarat and has an installed capacity of 6 tonne per day. SAMANVAY PARK: Ind-Ra Maintains BB- LT Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Samanvay Park's Long-Term Issuer Rating in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will continue to appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR80 mil. Term loan due on December 2017 maintained in non- cooperating category with IND BB- (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on June 24, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 2013, Samanvay Park is a partnership firm engaged in the construction of residential projects located in Vapi, Gujarat. SATNAM GLOBAL: CRISIL Migrates B- Rating to Not Cooperating ----------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Satnam Global Infraprojects Limited (SGIL) to 'CRISIL B-/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 50 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) Cash Credit 6.4 CRISIL B-/Stable (ISSUER NOT COOPERATING; Rating Migrated) Letter of Credit 5 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) Proposed Long Term 1 CRISIL B-/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) Working Capital Demand Loan 9.6 CRISIL B-/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with SGIL for obtaining information through letters and emails dated July 27, 2018, August 7, 2018 and August 13, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Satnam Global Infraprojects Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Satnam Global Infraprojects Limited is consistent with 'Scenario 2' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BBB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Satnam Global Infraprojects Limited to 'CRISIL B- /Stable/CRISIL A4 Issuer not cooperating'. SGIL was established by Mr. Satnam Singh Sandhu and Mr. B K Jain in 1987 as a private limited company, and was reconstituted as a public limited company in 2008. It executes engineering contracts involving erection, commissioning, and installation of machines. It also erects and commissions high-capacity diesel generator sets. SHARAYU AGRO: CRISIL Lowers Rating on INR200cr Term Loan to D ------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Sharayu Agro Industries Limited (SAI) to 'CRISIL D' from 'CRISIL BB-/Stable'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Cash 20 CRISIL D (Downgraded from Credit Limit 'CRISIL BB-/Stable') Term Loan 200 CRISIL D (Downgraded from 'CRISIL BB-/Stable') The downgrade reflects delay in repayment of term installment due to stretched liquidity condition on account of elongated working capital cycle. The rating continues to reflect below average financial risk profile marked by leveraged capital structure and exposure to risks related to cyclicality in the sugar industry and regulatory framework governing the industry. These weaknesses are partially offset by benefits derived from strategic location of its facility and integrated nature of operations. Key Rating Drivers & Detailed Description * Delay in repayment of term installment: Elongated receivable cycle and large inventory levels (44 days and 388 days respectively, as on March 31, 2018) resulted in stretched liquidity and in delay repayment of its term installment. Weaknesses * Below-average financial risk profile marked by leveraged capital structure: Financial risk profile has been below average, marked by leveraged capital structure and moderate debt protection metrics. Adjusted networth and gearing was at around INR44.3 Cr and 9.46 times as on March 31, 2018 respectively. Company had modest interest coverage of around 1.57 times for fiscal 2018. * Exposure to risks related to cyclicality in the sugar industry and high regulatory risks in sugar industry: The Indian sugar industry is highly regulated, with controls on both pricing/supply of sugarcane and sale of sugar. Consequently, the credit quality of domestic players continues to hinge on regulations regarding sugarcane price, the export-import policy, and GoI's sugar release mechanism. The cyclical nature of sugar industry, coupled with regulatory risks, renders significant volatility to operating profitability of sugar manufacturers. CRISIL believes that SAI will continue to remain susceptible to cyclicality in the sugar industry and to regulatory risks. Strengths * Benefits derived from SAI's strategic location and integrated nature of operations: The strategic location of the crushing facility enables a healthy availability of sugarcane during the crushing season, thereby enabling a healthy capacity utilisation during the crushing season. Furthermore, the company has distillery and co-gen plant thereby improving the operating efficiency. Company reported revenue of INR249.8 crore for fiscal 2018 at an operating profitability of around 19.6%. Incorporated on February 21, 2011 as Lokmanya Sahakar Udyog Limited was renamed as SAIL in fiscal 2015. Promoted by Mr. Srinivas Pawar, company is based out of Phaltan, Satara District (Maharashtra) and is engaged in manufacturing of sugar. SOUHARDHA INFRA-TECH: Ind-Ra Maintains B- in Non-Cooperating ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained Souhardha Infra-Tech Private Limited's Long-Term Issuer Rating in the non- cooperating category. The issuer did not participate in the rating exercise, despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND B- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR40 mil. Fund-based limit maintained in Non-Cooperating Category with IND B- (ISSUER NOT COOPERATING) rating; and -- INR10 mil. Non-fund-based limit maintained in Non-Cooperating Category with IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on May 17, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Souhardha Infra-Tech is a Bengaluru-based civil contractor. SRI LAKSHMI: CRISIL Lowers Rating on INR45cr Cash Loan to D ----------------------------------------------------------- CRISIL has downgraded the rating on bank facilities of Sri Lakshmi Godavari Spinning Mills Limited (SLGSML) to 'CRISIL D/CRISIL D Issuer not Cooperating' as the company has been delaying on its debt repayments. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 0.18 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL A4+ ISSUER NOT COOPERATING') Cash Credit 45.00 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') Foreign Documentary 8.21 CRISIL D (ISSUER NOT Bills Purchase COOPERATING; Downgraded from 'CRISIL A4+ ISSUER NOT COOPERATING') Proposed Long Term 7.61 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING; Downgraded from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') Term Loan 49.0 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') CRISIL has been consistently following up with SLGSML for obtaining information through letters and emails dated May 31, 2018 and June 30, 2018, among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SLGSML. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for SLGSML is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has downgraded the rating to 'CRISIL D/CRISIL D Issuer not Cooperating' as the company has been delaying on its debt repayments. SLGSML was set up in 2005 by Mr V Siva Nageswara Rao along with family and friends. The company manufactures cotton yarn at its unit in Guntur, Andhra Pradesh. It commenced operations in 2007. SRI SAHITHI: CRISIL Assigns B+ Rating to INR8cr Cash Loan --------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facilities of Sri Sahithi Spinning Mills Limited (SSSML). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8 CRISIL B+/Stable (Assigned) Long Term Loan 0.5 CRISIL B+/Stable (Assigned) The rating reflects the company's modest scale and working capital intensity in operations and below-average financial risk profile. These weaknesses are partially offset by the benefits SSSML derives from its promoters' extensive experience and fund support. Analytical Approach Unsecured loans of INR5.45 crore, extended by the promoters as on March 31, 2018, have been treated as debt as there is no confirmation that it would remain in business over medium term. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations: Scale of operations is modest, with revenue (INR33.6 crore in fiscal 2018) remaining stagnant at the current levels over the past four years, due to limited and optimally utilized capacities. Intense competition in the cotton yarn industry also constrains scalability, and therefore, profitability. * Working capital intensity in operations: Pressure on working capital will, likely, persist, because of sizeable inventory being maintained. Gross current assets and inventory were at 206 and 180 days, respectively, as on March 31, 2018, resulting in high bank line utilization. * Below-average financial risk profile: Modest networth and high gearing - INR7.30 crore and 2.6 times, respectively, as of March 2018 - may keep financial risk profile below average. Debt protection metrics are average: interest coverage was at 1.66 time in fiscal 2018. Strengths * The promoters' extensive experience: Presence of over 20 years in the textile industry has enabled the promoters to establish healthy relationship with customers and dealers in the region and maintain stable business operations despite cyclicality. Outlook: Stable CRISIL believes SSSML will continue to benefit from the promoters' extensive experience. The outlook may be revised to 'Positive' if revenue, operating profitability and cash accrual improve substantially, leading to a stronger financial risk profile, especially liquidity. Conversely, the outlook may be revised to 'Negative' if low revenue or profitability, or a stretch in working capital cycle, weakens financial risk profile and liquidity. Set up in 2002 in Guntur, Andhra Pradesh, SSSML manufactures cotton yarn. It has an installed capacity of 12,048 spindles. SUNRISE TIMPLY: Ind-Ra Migrates BB+ LT Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Sunrise Timply Company Private Limited's Long-Term Issuer Rating to the non- cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will now appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR80 mil. Fund-based limit migrated to Non-Cooperating Category with IND BB+ (ISSUER NOT COOPERATING) rating; and -- INR260 mil. Non-fund-based limit migrated to Non-Cooperating Category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on August 16, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Sunrise Timply Company was incorporated in 2000 by Late Gopal Bagla. The Bagla family has been engaged in the timber trading business for the last five decades. The company imports round timber logs from Malaysia, Myanmar, Ivory Coast, Nigeria, New Zealand and Indonesia. The plywood is procured from the domestic market. The company then sells its products to wholesalers, retailers and saw mills in the domestic market. STCPL's warehousing facility is in Khidderpore, Kolkata, nearby Kolkata Port. V.C. CONSTRUCTIONS: CRISIL Reaffirms B Rating on INR10cr Loan ------------------------------------------------------------- CRISIL has reaffirmed its rating on the bank facilities V.C. Constructions (VCC) at 'CRISIL B/Stable/CRISIL A4'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 5.5 CRISIL A4 (Reaffirmed) Cash Credit 10.0 CRISIL B/Stable (Reaffirmed) The ratings continue to reflect VCC's modest scale of operations. The weakness is partially offset by extensive experience of VCC's promoter in the civil construction industry and regular order flow. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations: Small scale of operations, with revenue estimated of INR10 crore in fiscal 2018, amid intense competition limits pricing power with suppliers and customers, thereby constraining profitability. Strength * Extensive experience of the promoter: Benefits derived from the promoter's experience of over 3 decade and healthy relations with suppliers and customers should continue to support the business. Consequently, steady orders flow which gives a significant revenue visibility over the medium term. Outlook: Stable CRISIL believes VCC will benefit over the medium term from the promoter's extensive experience. The outlook may be revised to 'Positive' if significant revenue growth and sustained profitability lead to sizeable cash accrual while efficiently managing working capital. The outlook may be revised to 'Negative' if low cash accrual or further stretch in working capital cycle or any large, debt-funded capital expenditure, or capital withdrawal, weakens the financial risk profile, particularly liquidity. Established in 2011, as a partnership firm by Mr Yejo John and others, VCC is a civil construction contractor. It undertakes contracts for construction of buildings for Public Works Department, Kerala, and its operations are headquartered in Kochi (Kerala). VIJAYALAKSHMI AGENCIES: CRISIL Moves B+ Rating to Not Cooperating ----------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Vijayalakshmi Agencies (VA) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3.75 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Proposed Long Term 1.25 CRISIL B+/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) CRISIL has been consistently following up with VA for obtaining information through letters and emails dated May 31, 2018 and June 30, 2018 among others, apart from telephonic communication. However, the issuer has remained non cooperative. The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Vijayalakshmi Agencies. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Vijayalakshmi Agencies is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Vijayalakshmi Agencies to 'CRISIL B+/Stable Issuer not cooperating'. Vijayalakshmi Agencies (VA) is Karnataka based partnership firm engaged in trading of FMCG products for Indian Tobacco Company (ITC). It was set up in 2009 by Mr Madhu GN and Mr Kishore T. It supplies to wholesalers and retailers in four regions viz. Sira, Tumkur, Madhugiri and Koratagere. YASH CONSTRUCTION: CRISIL Migrates B Rating to Not Cooperating -------------------------------------------------------------- CRISIL had migrated the ratings on the bank facilities of Yash Construction Company - Latur (YCC) to 'CRISIL B/Stable Issuer Not Cooperating' on October 31, 2017. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8.5 CRISIL B/Stable (Migrated from 'CRISIL B/Stable ISSUER NOT COOPERATING') Term Loan 1.5 CRISIL B/Stable (Migrated from 'CRISIL B/Stable ISSUER NOT COOPERATING') Due to inadequate information and in line with the guidelines of Securities and Exchange Board of India, CRISIL had migrated the ratings on the bank facilities of YCC to 'CRISIL B/Stable Issuer Not Cooperating' on October 31, 2017. However, the YCC's management subsequently shared information necessary for a comprehensive review of the ratings. Consequently, CRISIL is migrating the rating from 'CRISIL B/Stable Issuer Not Cooperating' to 'CRISIL B/Stable'. The rating continues to reflect the firm's large working capital requirement, modest scale of operations amid intense competition and geographical concentration in revenue. These weaknesses are partially offset by extensive experience of promoters in the civil construction industry and their funding support along with moderate financial risk profile. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations amid intense competition: Small scale of operations, reflected in modest revenue of INR70.3 crore in fiscal 2018, amid intense competition limits the pricing power with suppliers and customers, thereby constraining profitability. * Geographical concentration in revenue profile: YCC undertakes civil construction contracts majorly for Vidarbha and Marathwada, leading to geographical concentration in the revenue profile and making the firm susceptible to regional impetus on infrastructure development. * Large working capital requirement: Gross current assets increased over previous year's 121 days at about 250 days as on March 31, 2018. Strengths * Experience of partners and their funding support: Benefits from partners' extensive experience of over a decade and from executing various government projects will continue to support the business. Also, the partners have been supporting the business via timely, need-based unsecured loans. * Moderate financial risk profile: Gearing and networth have been moderate at 1.91 times and INR13.5 crore, respectively, as on March 31, 2018. Interest coverage and net cash accrual to total debt ratios were subdued at 2.8 times and 0.17 time, respectively, in fiscal 2018. Outlook: Stable CRISIL believes YCC will benefit from the extensive experience of its partners and moderate order book. The outlook may be revised to 'Positive' if firm reports better-than-expected scale of operations, while maintaining profitability, thereby leading to substantial cash accrual. The outlook may be revised to 'Negative' if lower-than-expected cash accrual, further stretch in working capital cycle, or unexpectedly large debt-funded capital expenditure, weakens the financial risk profile, particularly liquidity. Set up in 2007 in Latur as a partnership firm by Ms Anita Thombre and Ms Vandna Thorat, YCC undertakes civil construction contracts for roads, bridges, and buildings in Maharashtra. ================= I N D O N E S I A ================= GARUDA INDONESIA: Reform Faces Crucial Test as Shareholders Meet ---------------------------------------------------------------- Nikkei Asian Review reports that loss-making Garuda Indonesia's turnaround enters a key stretch as labor unions resist benefit reductions while the possibility of a government-led management reshuffle looms over this week's shareholders meeting. Nikkei says all eyes are on whether President Joko Widodo, the final decision-maker, will leave cost-cutting CEO Pahala Mansury at the helm or remove him to avoid a renewed threat of disruptive strikes at the state-owned flag carrier. Mr. Mansury, appointed in April 2017,spearheaded an overhaul that will see the airline shed its direct route to London, a crown jewel of Garuda's past expansion, while expanding code-sharing agreements, like one announced on Sept. 6 with Japan Airlines, Nikkei relates. According to Nikkei, costs mounted and routes began underperforming under Garuda's two previous CEOs -- Emirsyah Satar, who guided the airline through its 2011 listing on the Indonesian stock exchange, and successor Arif Wibowo -- as demand failed to keep up with management's eager network and fleet expansion. Garuda aimed to establish its own routes to North America, and sought to move upmarket, including by introducing first-class service. Nikkei relates that Mr. Mansury -- formerly a executive at Bank Mandiri, one of Indonesia's biggest lenders by assets -- was brought on to turn Garuda around, and has shifted the company's focus from scale to profitability. As part of the belt-tightening, the airline recently announced it will end its lightly traveled London route in October, focusing instead on flights to Amsterdam. According to the report, Mansury said Garuda has now cut 11 of 22 unprofitable routes. Nikkei notes that to expand or at least maintain its network while reducing costs, Garuda will make use of code-sharing. That includes teaming up with JAL on Tokyo-Jakarta flights, as well as some of their respective domestic routes. Garuda will also be allowed to sell some seats on and attach its name to JAL flights to Los Angeles and New York. Mansury told reporters in Jakarta on Sept. 6 it was the kind of partnership that could only have been achieved with JAL, and would expand Garuda's sales opportunities. On domestic routes, too, Garuda is concentrating its planes on profitable routes while teaming up on others. In May, the carrier announced a partnership with compatriot Sriwijaya Air, allowing it to curb purchases of additional aircraft, Nikkei recalls. It intends to put investment cash freed up by this strategy toward China routes, where high demand is expected. About a year and a half into Mansury's leadership, his efforts appear to be bearing fruit. Garuda's net loss narrowed in the April-June quarter from the preceding three months, the report says. But labor unions' outrage at attempts to cut generous benefits, among other cost-saving moves, led earlier this year to threats of strikes, including during peak times like the Islamic season of pilgrimage, or hajj. Nikkei adds that the government in Jakarta, which is Garuda's top shareholder and in effect holds management rights at the carrier, is wary of the disruptions that could result from a strike. Speculation has arisen that Mansury and other executives could be removed at an extraordinary shareholders meeting scheduled for Sept. 12, Nikkei says. Replacement candidates are rumored to include former Garuda executives, as well as people affiliated with the ruling coalition, adds Nikkei. Headquartered in Jakarta, Indonesia, government-owned airline PT Garuda Indonesia -- http://www.garuda-indonesia.com/-- currently has a fleet of about 77 aircraft offering service to some 27 domestic and 33 international destinations. Under its Citilink brand, it serves 10 other domestic routes. Garuda also ships about 200,000 tons of cargo a month and operates a computerized tracking system. ==================== N E W Z E A L A N D ==================== AUGUSTUS BISTRO: Owes Creditors More Than NZ$660,000 ---------------------------------------------------- Aimee Shaw at NZ Herald reports that failed Auckland fine dining restaurant Augustus Bistro owes creditors more than NZ$660,000, according to the liquidator's first report. According to the Herald, the French restaurant, located in the former Post Office building in Ponsonby, was put into liquidation last month and Staples Rodway's Tony Maginness and Jared Booth were appointed liquidators. The restaurant is temporarily closed until CCMR Ponsonby Post Office Limited finds a new buyer to takeover the business, the report says. Mr. Booth told the Herald liquidators had received several offers and were now going through the sales process. The Herald says liquidators are working to identify assets to pay secured creditors including Westpac Bank and 17 suppliers. CCMR Ponsonby Post Office Limited owes Westpac Bank NZ$61,312 and employees an estimated NZ$30,000. Unsecured creditors such as trade creditors, shareholder loans and Bank of New Zealand are owed a combined NZ$573,064. "During the course of the liquidation we expect to receive claims from creditors and we are currently dealing with secured claims at the moment," the Herald quotes Mr. Booth as saying. "We don't know how much we're going to realise the assets." August Bistro is listed for sale on ABC Business Sales and with Bayleys for NZ$600,000, and is said to make sales in excess of NZ$3 million each year, the Herald adds. ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2018. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. *** End of Transmission ***